Travel + Leisure (TNL) Q4 Earnings Report Preview: What To Look For

StockStory
02-18
Travel + Leisure (TNL) Q4 Earnings Report Preview: What To Look For

Hospitality company Travel + Leisure (NYSE:TNL) will be announcing earnings results tomorrow before market open. Here’s what you need to know.

Travel + Leisure missed analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $993 million, flat year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EPS estimates but a miss of analysts’ conducted tours estimates. It reported 195,000 conducted tours, up 4.3% year on year.

Is Travel + Leisure a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Travel + Leisure’s revenue to grow 2.7% year on year to $959.8 million, slowing from the 4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.69 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 five times over the last two years.

Looking at Travel + Leisure’s peers in the travel and vacation providers segment, some have already reported their Q4 results, giving us a hint as to what we can expect. United Airlines delivered year-on-year revenue growth of 7.8%, beating analysts’ expectations by 2.1%, and Royal Caribbean reported revenues up 12.9%, in line with consensus estimates. United Airlines traded down 2.3% following the results while Royal Caribbean was up 13.6%.

Read our full analysis of United Airlines’s results here and Royal Caribbean’s results here.

Investors in the travel and vacation providers segment have had steady hands going into earnings, with share prices up 1.2% on average over the last month. Travel + Leisure is up 4.8% during the same time and is heading into earnings with an average analyst price target of $59.54 (compared to the current share price of $59.97).

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