Travelzoo (TZOO) Misses Q3 Earnings and Revenue Estimates

Core Insights - Travelzoo reported quarterly earnings of $0.01 per share, missing the Zacks Consensus Estimate of $0.14 per share, representing an earnings surprise of -92.86% [1] - The company posted revenues of $22.2 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 3.15%, but showing an increase from $20.1 million year-over-year [2] - Travelzoo shares have declined approximately 49.7% year-to-date, contrasting with the S&P 500's gain of 16.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $24.1 million, and for the current fiscal year, it is $0.72 on revenues of $94.08 million [7] - The estimate revisions trend for Travelzoo was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Commerce industry, to which Travelzoo belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Travelzoo's stock performance [5]