Shares of Orbitz tumbled 16 percent Tuesday after the online travel company’s third-quarter profit fell short of expectations and it lowered its full-year revenue forecast ahead of the busy travel season.
THE SPARK: Orbitz earned $13 million, or 11 cents per share, for the three months ended Sept. 30. That’s down from $14.8 million, or 14 cents per share, a year ago.
Revenue climbed 11 percent, to $220.9 million from $198.3 million.
Analysts, on average, expected earnings of 13 cents per share on revenue of $220.3 million, according to a FactSet survey.
Gross bookings rose 5 percent on higher hotel and vacation package volumes, increased airfares and higher average booking values per hotel and vacation package transaction.
Total expenses increased to $193.5 million from $173.4 million.
The Chicago company now foresees full-year revenue of about $840 million. Previously, it expected revenue of $840 million to $850 million.
Wall Street is looking for 2013 revenue of $848.9 million.
SHARE ACTION: Shares of Orbitz Worldwide Inc. dropped $1.89, to $7.69, at the closing bell.