Looking back on travel and vacation providers stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Lindblad Expeditions (NASDAQ: LIND) and its peers.

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 17 travel and vacation providers stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.

While some travel and vacation providers stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.9% since the latest earnings results.

Best Q3: Lindblad Expeditions (NASDAQ: LIND)

Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions (NASDAQ: LIND) offers cruising experiences to remote destinations in partnership with National Geographic.

Lindblad Expeditions reported revenues of $240.2 million, up 16.6% year on year. This print exceeded analysts’ expectations by 4.6%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS and EBITDA estimates.

Natalya Leahy, Chief Executive Officer, said, "Our latest quarter is a testament to our great team and disciplined focus on strategic priorities and unforgettable guest experiences. Both our land and marine segments grew strongly with overall corporate revenue up 17% and a new record level of adjusted EBITDA while achieving highest ever measured guest satisfaction scores. Finally, the excellent work done to strengthen our balance sheet positions us for durable and profitable growth well into 2030."

Lindblad Expeditions pulled off the fastest revenue growth but had the weakest full-year guidance update of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $12.11.

Is now the time to buy Lindblad Expeditions? Access our full analysis of the earnings results here, it’s free for active Edge members.

American Airlines (NASDAQ: AAL)

One of the ‘Big Four’ airlines in the US, American Airlines (NASDAQ: AAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.

American Airlines reported revenues of $13.69 billion, flat year on year, in line with analysts’ expectations. The business had a very strong quarter with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 11.8% since reporting. It currently trades at $13.52.

Is now the time to buy American Airlines? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: 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 $1.3 billion, flat year on year, falling short of analysts’ expectations by 5%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and adjusted operating income estimates.

Hilton Grand Vacations delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 5.1% since the results and currently trades at $41.91.

Read our full analysis of Hilton Grand Vacations’s results here.

Hyatt Hotels (NYSE: H)

Founded in 1957, Hyatt Hotels (NYSE: H) is a global hospitality company with a portfolio of 20 premier brands and over 950 properties across 65 countries.

Hyatt Hotels reported revenues of $1.79 billion, up 9.6% year on year. This result missed analysts’ expectations by 1.7%. Overall, it was a softer quarter as it also produced a significant miss of analysts’ EPS estimates and full-year EBITDA guidance missing analysts’ expectations.

The stock is up 20.6% since reporting and currently trades at $166.44.

Read our full, actionable report on Hyatt Hotels here, it’s free for active Edge members.

Choice Hotels (NYSE: CHH)

With almost 100% of its properties under franchise agreements, Choice Hotels (NYSE: CHH) is a hotel franchisor known for its diverse brand portfolio including Comfort Inn, Quality Inn, and Clarion.

Choice Hotels reported revenues of $447.3 million, up 4.5% year on year. This print topped analysts’ expectations by 7.6%. More broadly, it was a satisfactory quarter as it also recorded a solid beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

The stock is flat since reporting and currently trades at $92.19.

Read our full, actionable report on Choice Hotels here, it’s free for active Edge members.

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 U.S. 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, leaving much uncertainty around 2025.

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