Online-travel and marketing company Travelzoo Inc. Tuesday posted higher first-quarter profit that trounced Wall Street's expectations, helped by a 56 percent surge in online-advertising revenue.

In afternoon trading Tuesday, Travelzoo shares soared 48 percent, or $9.51, to $29.49 on the Nasdaq Stock Market.

Net income came to $4.12 million, or 24 cents a share, for the latest quarter, compared with $1.83 million, or 10 cents a share, a year earlier, the New York-based company said.

Revenue for the latest quarter increased to $16.9 million from $11.2 million.

The average estimate of analysts polled by Thomson Financial was for quarterly profit of 14 cents a share on revenue of $14.7 million.

The company said the first quarter benefited from a lower-than-expected loss at its Europe operations and a lower effective tax rate.

Get the full story at the Los Angeles Times