What to Expect from Travelzoo's Earnings

Travelzoo TZOO is preparing to release its quarterly earnings on Wednesday, 2024-10-23. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Travelzoo to report an earnings per share (EPS) of $0.19.

The market awaits Travelzoo's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Performance in Previous Earnings

Last quarter the company beat EPS by $0.01, which was followed by a 7.49% increase in the share price the next day.

Performance of Travelzoo Shares

Shares of Travelzoo were trading at $12.56 as of October 18. Over the last 52-week period, shares are up 83.4%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Observations about Travelzoo

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Travelzoo.

With 4 analyst ratings, Travelzoo has a consensus rating of Buy. The average one-year price target is $20.0, indicating a potential 59.24% upside.

Peer Ratings Overview

This comparison focuses on the analyst ratings and average 1-year price targets of and Travelzoo, three major players in the industry, shedding light on their relative performance expectations and market positioning.

Overview of Peer Analysis

In the peer analysis summary, key metrics for and Travelzoo are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Travelzoo ranks at the top for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, Travelzoo is also in the middle. Overall, Travelzoo's performance is strong in Revenue Growth compared to its peers.

Get to Know Travelzoo Better

Travelzoo acts as a publisher of travel and entertainment offers. It operates in four segments. Travelzoo North America segment consists of operations in Canada and the U.S.; Travelzoo Europe segment consists of operations in France, Germany, Spain, and the U.K.; and Jack's Flight Club segment consists of subscription revenue from premium members to access and receive flight deals from Jack's Flight Club via email or via Android or Apple mobile applications; New Initiatives consists of Travelzoo's licensing activities in Asia Pacific territories. It derives its revenue through advertising fees including listing fees paid by travel, entertainment, and local businesses to advertise their offers on the company's media properties. Most of the company's revenue is derived from North America.

A Deep Dive into Travelzoo's Financials

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Travelzoo's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 0.06%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Communication Services sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 13.85%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Travelzoo's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 115.42%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Travelzoo's ROA excels beyond industry benchmarks, reaching 5.51%. This signifies efficient management of assets and strong financial health.

Debt Management: Travelzoo's debt-to-equity ratio stands notably higher than the industry average, reaching 9.04. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Travelzoo visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.