Travelzoo Shares Jump on better than expected Q3 Results (TZOO)

Travelzoo Inc. (NASDAQ: TZOO) shares have risen sharply in early trading today after the New York City-based company reported better than expected third-quarter financial results.

Shares of the global internet media company rose to an intra-day high of $34.08, and at last check, they were up 5.36% to $32.43. The stock is up more than 16% in the last three trading sessions.

Travelzoo’s third-quarter financial results were boosted by an increase in new subscriptions for its local deals newsletters. The company’s newsletter subscribers increased 14% in the third quarter of 2011.

For the third quarter, Travelzoo reported earnings of $0.36 per share, beating analysts’ estimate of $0.34 per share. The company’s revenue for the third quarter of 2011 was $38.7 million, once again above analysts’ estimate of $38.4 million.

Travelzoo’s North American business segment revenue jumped 32% on a year-over-year basis to $28.1 million. The segment reported an operating profit of $7.8 million for the third quarter. European business segment reported a 65% increase in third-quarter revenue to $10.7 million. Operating profit at the European business segment rose from $248,000 to $1.4 million in the third quarter.

In the third quarter, the company generated $9.1 million in cash from operating activities. The company’s capital expenditures during the third quarter were $847,000. The company ended the quarter with $32.4 million in cash and cash equivalents.

Chris Loughlin, CEO of Travelzoo, said that in a typically slow third quarter, the company’s growth accelerated, revenues grew at the fastest pace in five years and reached record levels in both North America and Europe. Loughlin further said that the company’s expansion into local deals focuses on growing both the top and the bottom line. He added that operating margins improved in the quarter, and operating income and earnings per share increased even more than revenues.

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.