Orbitz Worldwide’s third-quarter profit jumped 32% from a year earlier, but shares fell after the online travel agency’s 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. 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 forecasted fourth-quarter revenue of between $183 million to $189 million, less than the $191.1 million average analyst estimate in a Thomson Reuters survey. Shares were down 11% at about 4 p.m. Eastern time.
Expedia last month said its company’s 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.
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