Orbitz Beats, Reaffirms Guidance

The online travel company posts a profit in its first full quarter after going public.
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Online travel company

Orbitz

(ORBZ)

beat analysts' estimates in its first full quarter as a publicly traded company.

The company Wednesday said it posted a profit of $1.9 million, or 4 cents a share. Excluding a non-cash charge of $1.4 million for compensation expenses, net income was $3.3 million, or 7 cents a share. That compares with a loss of $2.4 million, or 7 cents a share, a year ago.

Revenue rose to $70.3 million from $49.5 million a year ago.

Analysts were expecting net income of $1.8 million, or 3 cents a share, on revenue of $69 million, according to Thomson First Call.

The nation's third largest online travel Web site said gross travel bookings rose 38% to $1.06 billion. Air revenue rose 22%.

Operating expenses rose to $48.9 million vs. $34.3 million for the same period of 2003, while gross profit rose 58% to $50.2 million.

The Chicago-based company, which went public in December 2003, also reaffirmed its earnings outlook.

For the second quarter, Orbitz expects revenue of $77 million to $80 million with adjusted pretax income, excluding charges, of $5 million to $8 million, or 11 cents to 18 cents a share. Analysts expect revenue of $81.8 million, net income of $8.5 million and EPS of 17 cents.

For the full year, Orbitz expects revenue of $320 million to $340 million and adjusted pretax income of $50 million to $60 million, excluding IPO-related stock-based compensation of $5.6 million.

The consensus estimates are for net income of $39.9 million and revenue of $332 million, according to Thomson First Call.

Shares were down 21 cents, or 0.8%, to $26.29, just above its $26 IPO price.