Orbitz Worldwide's third-quarter profit jumped 32% from a year earlier, but shares fell after the online travel agency's (OTA) fourth-quarter forecast lagged analyst estimates.
Orbitz's net income rose to $14.8 million from $11.2 million as the company cut selling, administrative and interest expenses from a year earlier. Revenue fell 2.3% to $198.3 million, as revenue declines from air travel, car rentals and travel insurance sales more than offset gains in hotel bookings.
Orbitz, the second-largest OTA booker to Expedia among U.S. travelers, forecast fourth-quarter revenue of between $183 million to $189 million, less than the $191.1 million average analyst estimate in a ThomsonReuters survey. Shares were down 11% at about 4 p.m. Eastern.
Expedia last month said its third-quarter profit fell 18% from a year earlier as higher administrative costs more than offset the effect of more hotel bookings. And Priceline said last week that its net income jumped 27% from a year earlier, as gross bookings surged 34% on continued overseas expansion. Follow Danny King on Twitter @dktravelweekly.