Despegar.com Is Avoiding Trivago's Rookie Mistake
The skies looked choppy as Despegar.com (NYSE: DESP) was getting ready to take off with its first quarterly report as a public company. The leading Latin American online travel site still managed to lift off, posting better-than-expected financial results on Thursday afternoon.
Revenue clocked in at $131.5 million for Despegar's third quarter, 24% ahead of last year as a 42% surge in revenue related to bookings for hotels, packages, and other travel products helped offset a modest 7% uptick in air ticketing sales. Analysts were holding out for $128.9 million. Net income moved lower -- sliding 22% to $11.2 million, or $0.19 a share -- but Wall Street was targeting a profit of only $0.15 a share. The market's reaction to the report was lukewarm. The shares opened slightly higher on Friday following the report, only to drift into slightly negative territory within minutes of the new trading day.
Image source: Despegar.com.
Source: Fool.com
