Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Travelzoo (TZOO) , which belongs to the Zacks Internet - Commerce industry.This global media commerce company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 25.53%.For the most recent quarter, Travelzoo was expected to post earnings of $0.20 per shar ...

Core Viewpoint - Travelzoo (TZOO) has experienced significant stock appreciation of 136.8% over the past year, outperforming both the Zacks Retail and Wholesale sector and the Zacks Internet – Commerce industry [1] Company Overview - Travelzoo is a global Internet media company with over 30 million members, providing exclusive travel deals and experiences [2] - The company operates through various platforms, including its website, mobile apps, and newsletters, targeting travel enthusiasts [9] Financial Performance - TZOO shares are benefiting from the introduction of a membership fee, expected to enhance revenue and profit starting in 2025, with legacy members contributing from January 2025 [3] - The Zacks Consensus Estimate for TZOO's 2025 earnings is $1.21 per share, reflecting a year-over-year growth of 10.78%, while revenues are estimated at $97.66 million, indicating a growth of 14.56% [13] Market Position - TZOO shares are currently trading above both the 50-day and 200-day moving averages, indicating a bullish trend [6] - The company has a strong partner network of over 5,000 travel partners, allowing it to offer exclusive deals on various travel experiences [11][12] Growth Prospects - Travelzoo's innovative offerings, such as Jack's Fight Club and Travelzoo META, diversify its portfolio and cater to different traveler segments [10] - The company’s Growth Score of A suggests it is attractive for growth-oriented investors [17] Valuation Concerns - Despite its strengths, TZOO's valuation appears stretched, with a forward 12-month price/sales ratio of 2.49X, higher than its median of 1.45X and the broader sector's 1.55X [15][14] - The company's growth expectations for 2025 heavily depend on converting legacy members into paid memberships, which poses a risk if there are delays or resistance [18]

Group 1 - Travelzoo (TZOO) is currently outperforming the Retail-Wholesale sector, with a year-to-date gain of approximately 106.2%, compared to the sector's average gain of 34.6% [4] - The Zacks Rank system indicates that Travelzoo has a Zacks Rank of 2 (Buy), reflecting improving earnings outlooks, with a consensus estimate for full-year earnings moving 12.4% higher in the past quarter [3] - Travelzoo belongs to the Internet - Commerce industry, which has seen an average gain of 46.8% this year, indicating that TZOO is performing better than its industry peers [5] Group 2 - The Retail-Wholesale group consists of 212 companies and is currently ranked 8 within the Zacks Sector Rank, which evaluates the strength of various groups based on the average Zacks Rank of individual stocks [2] - Another notable stock in the Retail-Wholesale sector, Williams-Sonoma (WSM), has also shown strong performance with a year-to-date return of 92.3% and a Zacks Rank of 2 (Buy) [4][5] - The Retail - Home Furnishings industry, to which Williams-Sonoma belongs, is ranked 201 and has gained 18.2% this year, indicating a weaker performance compared to Travelzoo and the Internet - Commerce industry [6]

Core Viewpoint - Travelzoo has experienced a significant stock price increase of 39.7% following its third-quarter 2024 results, indicating a strong investment case despite a slight revenue decline [1]. Financial Performance - The company's consolidated revenues for Q3 2024 decreased by 2% year-over-year to $20.1 million, while operating profit increased by 30% to $4 million, representing 20% of revenues, up from $3.1 million the previous year [4]. - Non-GAAP operating profit reached $4.9 million, constituting 25% of revenues, showing improvement from $3.9 million in the prior year [4]. Geographic Performance - The European segment showed strong performance with operating margins rising to 17% in Q3 2024, while North American revenues fell by 4% to $12.8 million but maintained a robust operating margin of 25% [5]. Strategic Initiatives - The introduction of a membership-fee model at the beginning of 2024 is expected to drive significant revenue and profit growth in 2025, with legacy members exempt from fees until January 2025 [6]. - The company's 60% ownership in Jack's Flight Club saw an 11% revenue increase year-over-year to $1.2 million in Q3, with premium subscribers growing by 14% [7]. Financial Position - Travelzoo reported $12.1 million in cash and cash equivalents as of September 30, 2024, and generated an operating cash flow of $5.3 million during the quarter, alongside significant share repurchases [9]. Valuation Metrics - The stock's forward P/E ratio stands at 16.85, suggesting potential undervaluation compared to the Zacks Internet - Commerce industry's average of 25.25, indicating an opportunity for value-oriented investors [10]. Investment Outlook - The anticipated revenue growth in 2025, driven by the membership fee implementation, positions Travelzoo favorably in the premium travel market segment, targeting affluent travelers [17]. - The Zacks Consensus Estimate for Travelzoo's 2024 revenues is $85.57 million, reflecting a year-over-year growth of 1.3%, with earnings expected to grow by 36.25% to $1.09 per share [18]. Conclusion - Current investors are advised to hold onto Travelzoo shares due to strong fundamentals and growth catalysts, while potential investors may find an attractive entry point following the recent stock surge [20][21].

Core Viewpoint - Travelzoo (TZOO) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Travelzoo's earnings estimate for the fiscal year ending December 2024 is projected at $1.09 per share, reflecting a year-over-year increase of 36.3% [8]. - Over the past three months, the Zacks Consensus Estimate for Travelzoo has risen by 14.7%, indicating a positive trend in earnings expectations [8]. Investment Implications - The upgrade to Zacks Rank 2 suggests that Travelzoo is positioned in the top 20% of Zacks-covered stocks, which may lead to increased buying pressure and a potential rise in stock price [11][10]. - The Zacks Rank system has a proven track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988, highlighting the effectiveness of earnings estimate revisions in driving investment decisions [7][9].

Core Viewpoint - Travelzoo (TZOO) shares have increased by 46.9% in the past four weeks, closing at $18.42, with a mean price target of $23.25 indicating a potential upside of 26.2% [1] Price Targets and Analyst Estimates - The mean estimate consists of four short-term price targets with a standard deviation of $8.26, where the lowest estimate of $17 suggests a 7.7% decline, while the highest estimate predicts a 90% increase to $35 [2] - A low standard deviation among price targets indicates strong agreement among analysts regarding the stock's price movement [7] Earnings Estimates and Analyst Sentiment - Analysts have shown increasing optimism about TZOO's earnings prospects, with three estimates revised higher in the last 30 days, leading to a 12.4% increase in the Zacks Consensus Estimate [10] - TZOO holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, suggesting a strong potential upside [11] Caution on Price Targets - Solely relying on price targets for investment decisions may not be wise, as empirical research indicates that they often mislead investors [5][8] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [6]

Company Overview - Travelzoo (TZOO) currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to the market [3] Price Performance - Over the past week, TZOO shares have increased by 14.15%, while the Zacks Internet - Commerce industry remained flat [5] - In a longer time frame, TZOO's monthly price change is 36.02%, significantly outperforming the industry's 1.57% [5] - Over the last quarter, TZOO shares have risen by 43.81%, and they are up 114.72% in the past year, compared to the S&P 500's increases of 13.08% and 38.58%, respectively [6] Trading Volume - TZOO's average 20-day trading volume is 167,798 shares, which serves as a price-to-volume baseline for assessing momentum [7] Earnings Outlook - In the past two months, three earnings estimates for TZOO have been revised upwards, while none have been revised downwards, raising the consensus estimate from $0.97 to $1.09 [9] - For the next fiscal year, one estimate has moved upwards, while one has been revised downwards [9] Conclusion - Given the strong price performance, positive earnings revisions, and high Momentum Style Score, TZOO is positioned as a promising investment opportunity [9]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________________________ Form 10-Q ______________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period f ...

Travelzoo (TZOO) closed the last trading session at $15.41, gaining 22.7% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $22 indicates a 42.8% upside potential. The mean estimate comprises four short-term price targets with a standard deviation of $8.68. While the lowest estimate of $17 indicates a 10.3% increase from the current price level, the most optimistic analyst expects th ...

Revenue and Profit Performance - Revenue of $20.1 million, down 2% year-over-year[1] - Consolidated operating profit of $4.0 million[1] - Non-GAAP consolidated operating profit of $4.9 million[1] - Earnings per share (EPS) of $0.26[1] - Net income for the three months ended September 30, 2024, was $3,256 thousand, compared to $2,400 thousand in the same period in 2023[21] - Total net revenues for the nine months ended September 30, 2024, were $63,224 thousand, compared to $63,328 thousand in the same period in 2023[22] - Operating profit for the nine months ended September 30, 2024, was $13,647 thousand, compared to $11,093 thousand in the same period in 2023[22] - GAAP operating profit for Q3 2024 was $4.045 million, an increase of 30.1% compared to $3.109 million in Q3 2023[23] - Non-GAAP operating profit for Q3 2024 was $4.926 million, an increase of 27.9% compared to $3.852 million in Q3 2023[23] - GAAP operating profit for the first nine months of 2024 was $13.647 million, an increase of 23.0% compared to $11.093 million in the same period of 2023[23] Cash Flow and Financial Position - Cash flow from operations of $5.3 million[1] - Net cash provided by operating activities for the three months ended September 30, 2024, was $5,331 thousand, compared to $3,643 thousand in the same period in 2023[21] - Net cash used in financing activities for the nine months ended September 30, 2024, was $17,197 thousand, compared to $12,065 thousand in the same period in 2023[21] - Cash, cash equivalents, and restricted cash at the end of the period were $12,106 thousand for September 30, 2024, compared to $16,582 thousand for September 30, 2023[21] - Total assets decreased from $55,382 thousand in December 2023 to $50,530 thousand in September 2024[19] - Cash and cash equivalents decreased from $15,713 thousand in December 2023 to $11,429 thousand in September 2024[19] Business Segment Performance - North America business segment revenue decreased 4% year-over-year to $12.8 million[4] - Europe business segment revenue increased 1% year-over-year to $6.1 million[5] - Jack's Flight Club revenue from unaffiliated customers increased 11% year-over-year to $1.2 million[6] - Revenues from unaffiliated customers for Travelzoo North America were $12,846 thousand for the three months ended September 30, 2024, compared to $13,094 thousand in the same period in 2023[22] - Operating profit for Travelzoo North America was $3,150 thousand for the three months ended September 30, 2024, compared to $3,015 thousand in the same period in 2023[22] Operating Expenses - GAAP operating expense for Q3 2024 was $13.505 million, a decrease of 8.9% compared to $14.825 million in Q3 2023[23] - Non-GAAP operating expense for Q3 2024 was $12.624 million, a decrease of 10.4% compared to $14.082 million in Q3 2023[23] - GAAP operating expense for the first nine months of 2024 was $41.869 million, a decrease of 4.8% compared to $43.999 million in the same period of 2023[23] - Non-GAAP operating expense for the first nine months of 2024 was $39.770 million, a decrease of 4.3% compared to $41.547 million in the same period of 2023[23] - Amortization of intangibles for Q3 2024 was $95 thousand, a decrease of 75.3% compared to $384 thousand in Q3 2023[23] - Stock option expenses for Q3 2024 were $456 thousand, an increase of 27.0% compared to $359 thousand in Q3 2023[23] - Severance-related expenses for Q3 2024 were $330 thousand, compared to $0 in Q3 2023[23] Membership and Growth Expectations - As of September 30, 2024, Travelzoo had 30.1 million members and subscribers worldwide[9] - Travelzoo expects growth in revenue year-over-year for Q4 2024, albeit at a smaller pace than in 2023[13]