Hospitality company Travel + Leisure (NYSE: TNL) will be reporting earnings this Wednesday morning. Here’s what to expect.
Travel + Leisure beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $1.04 billion, up 5.1% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ adjusted operating income estimates. It reported 200,000 tours conducted, up 2.6% year on year.
Is Travel + Leisure a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Travel + Leisure’s revenue to grow 2.6% year on year to $996.2 million, slowing from the 3.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.82 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Travel + Leisure has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Travel + Leisure’s peers in the consumer discretionary - travel and vacation providers segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Frontier posted flat year-on-year revenue, beating analysts’ expectations by 2.3%, and Hilton reported revenues up 10.9%, topping estimates by 3.3%. Frontier traded down 12% following the results while Hilton’s stock price was unchanged.
Read our full analysis of Frontier’s results here and Hilton’s results here.
Investors in the consumer discretionary - travel and vacation providers segment have had fairly steady hands going into earnings, with share prices down 1.7% on average over the last month. Travel + Leisure is up 1.4% during the same time and is heading into earnings with an average analyst price target of $78.33 (compared to the current share price of $70.88).
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