Wrapping up Q4 earnings, we look at the numbers and key takeaways for the travel and vacation providers stocks, including Pursuit (NYSE: PRSU) 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 19 travel and vacation providers stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 6.9% above.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 17.1% since the latest earnings results.
Best Q4: Pursuit (NYSE: PRSU)
With attractions ranging from glacier tours in the Canadian Rockies to an oceanfront geothermal lagoon in Iceland, Pursuit Attractions and Hospitality (NYSE: PRSU) operates iconic travel experiences, experiential marketing services, and exhibition management across North America and Europe.
Pursuit reported revenues of $45.8 million, down 84.3% year on year. This print exceeded analysts’ expectations by 8.8%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ EPS estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Pursuit delivered the slowest revenue growth of the whole group. The stock is down 4.7% since reporting and currently trades at $35.39.
Is now the time to buy Pursuit? Access our full analysis of the earnings results here, it’s free.
Target Hospitality (NASDAQ: TH)
Building mini-communities at places such as oil drilling sites, Target Hospitality (NASDAQ: TH) is a provider of specialty workforce lodging accommodations and services.
Target Hospitality reported revenues of $83.69 million, down 33.7% year on year, outperforming analysts’ expectations by 4.5%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
The market seems happy with the results as the stock is up 6.7% since reporting. It currently trades at $6.54.
Is now the time to buy Target Hospitality? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Hyatt Hotels (NYSE: H)
Founded in 1957, Hyatt Hotels (NYSE: H) is a global hospitality company with a portfolio of 20 premier brands and over 950 properties across 65 countries.
Hyatt Hotels reported revenues of $1.60 billion, down 3.5% year on year, falling short of analysts’ expectations by 3.1%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Hyatt Hotels delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 24.8% since the results and currently trades at $122.05.
Read our full analysis of Hyatt Hotels’s results here.
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 $1.28 billion, up 26% year on year. This number topped analysts’ expectations by 0.9%. However, it was a softer quarter as it produced a significant miss of analysts’ EPS estimates.
Hilton Grand Vacations pulled off the fastest revenue growth among its peers. The stock is down 8.2% since reporting and currently trades at $37.18.
Read our full, actionable report on Hilton Grand Vacations here, it’s free.
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 $2.11 billion, up 6.2% year on year. This result was in line with analysts’ expectations. More broadly, it was a satisfactory quarter as it also produced a solid beat of analysts’ EPS estimates.
The stock is down 25% since reporting and currently trades at $18.79.
Read our full, actionable report on Norwegian Cruise Line here, it’s free.
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