Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Travel + Leisure (NYSE:TNL) and its peers.
Airlines, hotels, resorts, and cruise line companies often sell experiences rather than tangible products, and in the last decade-plus, consumers have slowly shifted from buying "things" (wasteful) to buying "experiences" (memorable). In addition, the internet has introduced new ways of approaching leisure and lodging such as booking homes and longer-term accommodations. Traditional airlines, hotel, resorts, and cruise line companies must innovate to stay relevant in a market rife with innovation.
The 17 travel and vacation providers stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 4.8% on average since the latest earnings results.
Travel + Leisure (NYSE:TNL)
Formerly known as Wyndham Destinations, Travel + Leisure (NYSE:TNL) is a global vacation company that provides travelers with vacation ownership, exchange, and travel services.
Travel + Leisure reported revenues of $1.04 billion, up 5.1% year on year. This print exceeded analysts’ expectations by 1%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ adjusted operating income estimates but a miss of analysts’ tours conducted estimates.
Interestingly, the stock is up 16.1% since reporting and currently trades at $70.44.
Is now the time to buy Travel + Leisure? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q3: Lindblad Expeditions (NASDAQ:LIND)
Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions (NASDAQ:LIND) offers cruising experiences to remote destinations in partnership with National Geographic.
Lindblad Expeditions reported revenues of $240.2 million, up 16.6% year on year, outperforming analysts’ expectations by 4.6%. The business had a very strong quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Lindblad Expeditions scored the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 15.9% since reporting. It currently trades at $14.14.
Is now the time to buy Lindblad Expeditions? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: Hilton Grand Vacations (NYSE:HGV)
Spun off from Hilton Worldwide in 2017, Hilton Grand Vacations (NYSE:HGV) is a global timeshare company that provides travel experiences for its customers through its timeshare resorts and club membership programs.
Hilton Grand Vacations reported revenues of $1.3 billion, flat year on year, falling short of analysts’ expectations by 5%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.
Hilton Grand Vacations delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 1.3% since the results and currently trades at $44.75.
Read our full analysis of Hilton Grand Vacations’s results here.
Norwegian Cruise Line (NYSE:NCLH)
With amenities like a full go-kart race track built into its ships, Norwegian Cruise Line (NYSE:NCLH) is a premier global cruise company.
Norwegian Cruise Line reported revenues of $2.94 billion, up 4.7% year on year. This result came in 2.7% below analysts' expectations. It was a slower quarter as it also logged a miss of analysts’ revenue estimates and EBITDA guidance for next quarter missing analysts’ expectations.
The stock is down 2.7% since reporting and currently trades at $21.59.
Read our full, actionable report on Norwegian Cruise Line here, it’s free for active Edge members.
Sabre (NASDAQ:SABR)
Originally a division of American Airlines, Sabre (NASDAQ:SABR) is a technology provider for the global travel and tourism industry.
Sabre reported revenues of $715.2 million, up 3.5% year on year. This number topped analysts’ expectations by 1.2%. Aside from that, it was a slower quarter as it logged a miss of analysts’ central reservation system transactions estimates and a significant miss of analysts’ EPS estimates.
The stock is down 24.8% since reporting and currently trades at $1.51.
Read our full, actionable report on Sabre here, it’s free for active Edge members.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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