The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how travel and vacation providers stocks fared in Q3, starting with Marriott Vacations (NYSE: VAC).
Airlines, hotels, resorts, and cruise line companies often sell experiences rather than tangible products, and in the last decade-plus, consumers have slowly shifted from buying "things" (wasteful) to buying "experiences" (memorable). In addition, the internet has introduced new ways of approaching leisure and lodging such as booking homes and longer-term accommodations. Traditional airlines, hotel, resorts, and cruise line companies must innovate to stay relevant in a market rife with innovation.
The 16 travel and vacation providers stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was 0.9% below.
Luckily, travel and vacation providers stocks have performed well with share prices up 14.8% on average since the latest earnings results.
Marriott Vacations (NYSE: VAC)
Spun off from Marriott International in 1984, Marriott Vacations (NYSE: VAC) is a vacation company providing leisure experiences for travelers around the world.
Marriott Vacations reported revenues of $1.31 billion, up 10% year on year. This print exceeded analysts’ expectations by 3.5%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ adjusted operating income estimates.
“Our results this quarter reflect our continued progress on enhancing the experience for our owners, members and other customers, as well as the continued recovery from last year's Maui wildfires. We also took a series of targeted actions during the quarter, helping us grow contract sales 5% year-over-year,” said John Geller, president and chief executive officer.
Interestingly, the stock is up 18% since reporting and currently trades at $100.
Is now the time to buy Marriott Vacations? Access our full analysis of the earnings results here, it’s free.
Best Q3: Playa Hotels & Resorts (NASDAQ: PLYA)
Sporting a roster of beachfront properties, Playa Hotels & Resorts (NASDAQ: PLYA) is an owner, operator, and developer of all-inclusive resorts in prime vacation destinations.
Playa Hotels & Resorts reported revenues of $183.5 million, down 13.9% year on year, outperforming analysts’ expectations by 4.1%. The business had a stunning quarter with a solid beat of analysts’ EPS and EBITDA estimates.
The market seems happy with the results as the stock is up 7.9% since reporting. It currently trades at $9.72.
Is now the time to buy Playa Hotels & Resorts? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Sabre (NASDAQ: SABR)
Originally a division of American Airlines, Sabre (NASDAQ: SABR) is a technology provider for the global travel and tourism industry.
Sabre reported revenues of $764.7 million, up 3.3% year on year, falling short of analysts’ expectations by 1.4%. It was a slower quarter as it posted a significant miss of analysts’ EPS and airline bookings estimates.
Sabre delivered the weakest full-year guidance update in the group. As expected, the stock is down 9.7% since the results and currently trades at $3.72.
Read our full analysis of Sabre’s results here.
Delta Air Lines (NYSE: DAL)
One of the ‘Big Four’ airlines in the US, Delta Air Lines (NYSE: DAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.
Delta Air Lines reported revenues of $14.59 billion, flat year on year. This number came in 4.6% below analysts' expectations. Overall, it was a slower quarter as it also produced a miss of analysts’ adjusted operating income estimates.
Delta Air Lines had the weakest performance against analyst estimates among its peers. The stock is up 25% since reporting and currently trades at $63.76.
Read our full, actionable report on Delta Air Lines here, it’s free.
Hilton Grand Vacations (NYSE: HGV)
Spun off from Hilton Worldwide in 2017, Hilton Grand Vacations (NYSE: HGV) is a global timeshare company that provides travel experiences for its customers through its timeshare resorts and club membership programs.
Hilton Grand Vacations reported revenues of $1.31 billion, up 28.3% year on year. This result topped analysts’ expectations by 0.9%. Aside from that, it was a mixed quarter as it also produced a decent beat of analysts’ EBITDA estimates but a miss of analysts’ adjusted operating income estimates.
Hilton Grand Vacations achieved the fastest revenue growth among its peers. The stock is up 10.2% since reporting and currently trades at $44.26.
Read our full, actionable report on Hilton Grand Vacations here, it’s free.
Market Update
As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the US Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain. Said differently, there's still much uncertainty around 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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