Hospitality company Travel + Leisure (NYSE: TNL) will be reporting results this Wednesday morning. Here’s what you need to know.
Travel + Leisure beat analysts’ revenue expectations last quarter, reporting revenues of $1.03 billion, up 5.7% year on year. It was a strong quarter for the company, with EBITDA guidance for next quarter beating analysts’ expectations and a decent beat of analysts’ revenue estimates. It reported 184,000 tours conducted, up 5.1% 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, the market is expecting Travel + Leisure’s revenue to grow 2.4% year on year, in line with the 2% increase it recorded in the same quarter last year.
The majority of analysts covering the company have 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 multiple times over the last two years.
Looking at Travel + Leisure’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 6.1%, meeting analysts’ expectations, and Delta reported revenues up 12.9%, topping estimates by 4%. Carnival traded down 5.2% following the results while Delta was up 3.4%.
Read our full analysis of Carnival’s results here and Delta’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 12.7% on average over the last month. Travel + Leisure is up 8.9% during the same time and is heading into earnings with an average analyst price target of $87.17 (compared to the current share price of $77.30).
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