Publish date:

Travelocity Lowers Fourth-Quarter Revenue Guidance

Author:

Travelocity

(TVLY)

lowered its fourth-quarter revenue guidance but left its earning estimate intact.

The Fort Worth, Texas, online travel company said it expects fourth-quarter revenue of $68 million, down 9% from previous forecasts, reflecting weak sales of plane tickets in December.

TST Recommends

The company expects to report pro forma earnings of 8 cents to 11 cents a share, roughly in line with analysts' estimates, and said it expects revenue growth of 20%-30% in 2002.

Travelocity cited capacity reductions by major airlines and the "lingering effects of the September and November tragedies" for the slowdown in ticket sales. It said advertising and other "non-transactional" revenue would slightly exceed previous guidance.

Travelocity's shares gained 18 cents to $27.44 Thursday.