Hospitality company Travel + Leisure (NYSE: TNL) will be reporting earnings this Wednesday before the bell. Here’s what to look for.
Travel + Leisure met analysts’ revenue expectations last quarter, reporting revenues of $961 million, up 2.9% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates. It reported 161,000 tours conducted, up 5.2% 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 2.7% year on year, in line with the 3.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will 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 - travel and vacation providers segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Delta delivered year-on-year revenue growth of 18.7%, beating analysts’ expectations by 3.9%, and Carnival reported revenues up 5.3%, in line with consensus estimates. Delta traded down 3.2% following the results while Carnival’s stock price was unchanged.
Read our full analysis of Delta’s results here and Carnival’s results here.
There has been positive sentiment among investors in the consumer discretionary - travel and vacation providers segment, with share prices up 2.2% on average over the last month. Travel + Leisure is down 2.9% during the same time and is heading into earnings with an average analyst price target of $87.58 (compared to the current share price of $72.52).
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