November 08, 2012

Orbitz shares fall on disappointing forecast

Shares of Orbitz Worldwide Inc. fell more than 7% to $2.40 on Wednesday morning after the online travel site reported a sharp jump in third-quarter earnings but issued a disappointing revenue forecast for the current period.

Orbitz Worldwide Inc on Wednesday reported higher quarterly profit but cut its full-year forecast, sending its shares down more than 11 percent.

The Chicago-based online travel agency, which owns the CheapTickets and ebookers travel sites, said the downturn in Europe slowed growth in hotel room nights. But it added that the market was recovering.

Still, the company cut its full-year forecast for net revenue and adjusted earnings before interest, taxes, depreciation and amortization, citing marketing challenges with its U.S. consumer business.

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