As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at travel and vacation providers stocks, starting with United Airlines (NASDAQ: UAL).
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 19 travel and vacation providers stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 6.9% above.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 17.3% since the latest earnings results.
United Airlines (NASDAQ: UAL)
Founded in 1926, United Airlines Holdings (NASDAQ: UAL) operates a global airline network, providing passenger and cargo air transportation services across domestic and international routes.
United Airlines reported revenues of $14.7 billion, up 7.8% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a strong quarter for the company with a decent beat of analysts’ adjusted operating income and EPS estimates.
"United had a unique strategy coming out of COVID and our people have delivered for customers leading to a structurally and permanently changed industry," said United Airlines CEO Scott Kirby.
The stock is down 37.6% since reporting and currently trades at $69.05.
Is now the time to buy United Airlines? Access our full analysis of the earnings results here, it’s free.
Best Q4: Pursuit (NYSE: PRSU)
With attractions ranging from glacier tours in the Canadian Rockies to an oceanfront geothermal lagoon in Iceland, Pursuit Attractions and Hospitality (NYSE: PRSU) operates iconic travel experiences, experiential marketing services, and exhibition management across North America and Europe.
Pursuit reported revenues of $45.8 million, down 84.3% year on year, outperforming analysts’ expectations by 8.8%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 6% since reporting. It currently trades at $34.91.
Is now the time to buy Pursuit? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $1.60 billion, down 3.5% year on year, falling short of analysts’ expectations by 3.1%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
Hyatt Hotels delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 25.5% since the results and currently trades at $120.86.
Read our full analysis of Hyatt Hotels’s results here.
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 $13.66 billion, up 4.6% year on year. This result surpassed analysts’ expectations by 2%. However, it was a slower quarter as it logged full-year EPS guidance missing analysts’ expectations.
The stock is down 44.4% since reporting and currently trades at $10.38.
Read our full, actionable report on American Airlines here, it’s free.
Norwegian Cruise Line (NYSE: NCLH)
With amenities like a full go-kart race track built into its ships, Norwegian Cruise Line (NYSE: NCLH) is a premier global cruise company.
Norwegian Cruise Line reported revenues of $2.11 billion, up 6.2% year on year. This number was in line with analysts’ expectations. More broadly, it was a satisfactory quarter as it also logged a solid beat of analysts’ EPS estimates but EBITDA guidance for next quarter missing analysts’ expectations.
The stock is down 25.5% since reporting and currently trades at $18.66.
Read our full, actionable report on Norwegian Cruise Line here, it’s free.
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