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| Tuesday, October 24, 2006 |
Web travel-search company Travelzoo Inc. said Tuesday its third-quarter profit almost doubled on continued growth in online advertising.
The profit results beat Wall Street's estimates, but sales growth fell short of analysts' projections. Shares surged $6.60, or 20 percent, to $39 in morning trading on the Nasdaq, where they've traded between $16.50 and $52.99 over the past year.
Net income grew to $4.6 million, or 28 cents per share, from $2.3 million, or 13 cents per share, in the prior-year period. The results topped Wall Street's expectations of 24 cents per share, according to an analyst poll by Thomson Financial.
Revenue rose to $17.6 million in the quarter, up from $13.4 million in the year-ago period. Analysts, on average, had expected $18.2 million.
Travelzoo reported quarterly revenue growth at both its North American and European units. Also aiding the bottom line, Travelzoo said its effective income tax rate for the quarter was 46 percent, down from 48 percent in the year-ago period. |
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