Travel + Leisure Co. TNL is scheduled to report results for the fourth quarter of 2024 on Feb. 19, before market open.

In the last reported quarter, earnings surpassed the Zacks Consensus Estimate by 5.4%. TNL’s earnings surpassed expectations in each of the trailing four quarters, the average surprise being 18.3%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

TNL’s Q4 Estimates

The Zacks Consensus Estimate for fourth-quarter adjusted earnings has remained flat at $1.71 per share in the past 60 days. The consensus estimate indicates a 13.6% decline from the year-ago quarter’s reported earnings of $1.98 per share.

The consensus mark for net revenues is pegged at $963.6 million, indicating 3.1% growth from the year-ago quarter’s reported level.

Factors to Note Ahead of TNL’s Q4 Results

The top line of Travel + Leisure for the to-be-reported quarter is expected to have improved year over year on the back of increased tours and growth in new owner tours. The company continues to benefit from robust volume per guest (“VPG”). VPG benefits from strong engagement from existing owners, which underscores the value they place on their ownership. Strategic partnerships and a diverse multi-brand strategy to capture a larger share of the vacation market also bode well for the company.

However, the company remains concerned about the decline in travel membership revenues. Revenues of the segment declined 3% in third-quarter 2024, indicating continued challenges in transforming the business amid industry consolidation and evolving customer preferences. High costs are likely to have negatively impacted the company’s bottom line.

What Does Our Model Say About TNL?

Our proven model does not conclusively predict an earnings beat for Travel + Leisure this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. This is not the case here.

TNL’s Earnings ESP: TNL has an Earnings ESP of -10.53%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

TNL’s Zacks Rank: Travel + Leisure currently has a Zacks Rank #3.

Stocks to Consider

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this time around.

Life Time Group Holdings, Inc. LTH has an Earnings ESP of +14.29% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

LTH is expected to register a 10.5% increase in earnings for the to-be-reported quarter. It reported earnings beats in three of the trailing four quarters and missed on one occasion, with an average surprise of 46.2%.

Amer Sports, Inc. AS currently has an Earnings ESP of +6.56% and a Zacks Rank of 2.

AS reported earnings beats in three of the trailing four quarters and missed on one occasion, with an average surprise of 120.4%.

Six Flags Entertainment Corporation FUN currently has an Earnings ESP of +9.46% and a Zacks Rank of 2. FUN’s earnings for the to-be-reported quarter are expected to increase 118.8%.

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Six Flags Entertainment Corporation (FUN) : Free Stock Analysis Report

Travel + Leisure Co. (TNL) : Free Stock Analysis Report

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