Travelzoo Warning Brings 52-Week Low Challenge

Travelzoo Inc. (NASDAQ: TZOO) is having one nasty day. The online travel booking site warned that third-quarter revenue was now falling and it expects a worse-than-expected earnings report as well. An admission from management that hotel offerings were not up to snuff is not helping matters at all.

The company is now targeting $35.0 million to $35.5 million in revenue and sees earnings coming in a range of $0.20 to $0.22 per share. Thomson Reuters had the consensus estimates of $0.27 in earnings per share and its consensus on revenue was about $38.9 million.

In an order to help things get back on track, Travelzoo says that it is in talks to acquire a hotel bookings website. We will have to wait for the size details later. The new market value of Travelzoo is about $375 million.

Travelzoo is trading down at $20.28 after a 13.7% drop, and the lowest point so far on Friday was $19.33. This is important because Travelzoo's prior 52-week trading range was $19.38 to $34.95.

JON C. OGG

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