Benchmark Cuts Price Target on Orbitz Worldwide (OWW) Ahead of Earnings on Thursday
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Price: $7.68 +0.66%
Rating Summary:
2 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 24 | New: 29
Rating Summary:
2 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 24 | New: 29
Trade OWW Now!
Benchmark is maintaining its Hold rating on shares of Orbitz Worldwide Inc. (NYSE: OWW) ahead of its third quarter results on Thursday, but is lowering its price target from $3 to $2.
The firm forecasts gross booking will decline by 3 percent for the third quarter to $2.8 billion with a 5 percent loss in air booking. Sales for the quarter are forecasted to grow by 3 percent to $200 million while adjusted EBITDA could fall 24 percent to $36 million. Adjusted EPS could be $0.10. The Street is looking for revenue of $198.32 million for the quarter with EPS of $0.06.
Benchmark believes OWW's eBookers will continue to show strong growth, but notes that Expedia's (Nasdaq: EXPE) quarterly results may indicate another tough quarter for Orbitz.
For FY11, the firm forecasts a 4 percent decline in air booking and a 7 percent growth in non-air booking. Earnings is estimated to be $0.16 per share, down from the firm's previous estimate of $0.19, on $762 million in sales.
For FY12, Benchmark anticipates revenue may grow by 5 percent to $800 million on a 2 percent growth in booking. ESP is forecasted to be $0.23 as adjusted EBITDA is estimated to grow by 6 percent.
For more ratings news on Orbitz Worldwide Inc. click here and for the rating history of Orbitz Worldwide Inc. click here.
Shares of Orbitz Worldwide Inc. closed at $1.89 yesterday, with a 52 week range of $1.57-$7.01.
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The firm forecasts gross booking will decline by 3 percent for the third quarter to $2.8 billion with a 5 percent loss in air booking. Sales for the quarter are forecasted to grow by 3 percent to $200 million while adjusted EBITDA could fall 24 percent to $36 million. Adjusted EPS could be $0.10. The Street is looking for revenue of $198.32 million for the quarter with EPS of $0.06.
Benchmark believes OWW's eBookers will continue to show strong growth, but notes that Expedia's (Nasdaq: EXPE) quarterly results may indicate another tough quarter for Orbitz.
For FY11, the firm forecasts a 4 percent decline in air booking and a 7 percent growth in non-air booking. Earnings is estimated to be $0.16 per share, down from the firm's previous estimate of $0.19, on $762 million in sales.
For FY12, Benchmark anticipates revenue may grow by 5 percent to $800 million on a 2 percent growth in booking. ESP is forecasted to be $0.23 as adjusted EBITDA is estimated to grow by 6 percent.
For more ratings news on Orbitz Worldwide Inc. click here and for the rating history of Orbitz Worldwide Inc. click here.
Shares of Orbitz Worldwide Inc. closed at $1.89 yesterday, with a 52 week range of $1.57-$7.01.
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