Online travel agency Orbitz Worldwide Inc. (OWW), Thursday reported a swing to profit in the first quarter from a loss last year, helped mainly by a hefty tax benefit. The company also detailed a revenue outlook for the second quarter, which is indicated to come in ahead of Wall Street current estimates. Following the announcement of results, Orbitz Worldwide shares surged over 22 percent.
Chicago-based Orbitz reported a first-quarter profit of $146.2 million or $1.34 per share, compared to a loss of $6.5 million or $0.06 per share last year.
Orbitz recorded a tax benefit of $158.5 million for the first quarter related to the release of a $157.5 million valuation allowance of the company's U.S. federal deferred tax assets.
On average, eight analysts polled by Thomson Reuters expected a loss of $0.06 per share for the quarter. Analysts' estimates typically exclude special gains and losses.
Orbitz revenues for the quarter grew 7 percent to $202.9 million from $189.8 million last year. Analysts expected revenue of $198.09 million for the quarter. Revenue growth was primarily driven by higher hotel volume and higher net revenue per air, hotel and vacation package transaction.
Gross bookings for the period dropped 1 percent to $3.10 billion for the quarter. Orbitz reported hotel room night growth of 14 percent compared to 3 percent last year.
Total operating expenses rose to $205.7 million from $185.8 million last year.
Looking forward to the second quarter, the company expects revenue of $214 million to $220 million. Analysts currently anticipate revenues of $212.59 million for the quarter. For the full year 2013, the company expects revenue growth of four percent to seven percent.
OWW is currently trading at $7.89, up $1.44 or 22.31%, on the NYSE.
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