Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Carnival (NYSE: CCL) and the best and worst performers in the travel and vacation providers industry.
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 mixed Q1. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was 4.5% above.
Thankfully, share prices of the companies have been resilient as they are up 7.9% on average since the latest earnings results.
Carnival (NYSE: CCL)
Boasting outrageous amenities like a planetarium on board its ships, Carnival (NYSE: CCL) is one of the world's largest leisure travel companies and a prominent player in the cruise industry.
Carnival reported revenues of $5.81 billion, up 7.5% year on year. This print exceeded analysts’ expectations by 0.9%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
"Our first quarter was truly characterized by outperformance. This was across the board and led by incredibly strong demand throughout our portfolio including exceptional close-in demand that exceeded expectations for both ticket prices and onboard spending," commented Carnival Corporation & plc's Chief Executive Officer Josh Weinstein.
Interestingly, the stock is up 5.7% since reporting and currently trades at $22.41.
Is now the time to buy Carnival? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $179.7 million, up 17% year on year, outperforming analysts’ expectations by 18.8%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Lindblad Expeditions achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 17.1% since reporting. It currently trades at $10.67.
Is now the time to buy Lindblad Expeditions? Access our full analysis of the earnings results here, it’s free.
Slowest Q1: 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 $1.15 billion, flat year on year, falling short of analysts’ expectations by 7.6%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
Hilton Grand Vacations delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 13.9% since the results and currently trades at $38.29.
Read our full analysis of Hilton Grand Vacations’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 $12.55 billion, flat year on year. This print was in line with analysts’ expectations. Aside from that, it was a slower quarter as it logged a significant miss of analysts’ EBITDA estimates and EPS guidance for next quarter missing analysts’ expectations significantly.
The stock is up 11.6% since reporting and currently trades at $10.40.
Read our full, actionable report on American Airlines here, it’s free.
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 $1.72 billion, flat year on year. This result beat analysts’ expectations by 2%. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.
The stock is up 14.7% since reporting and currently trades at $129.28.
Read our full, actionable report on Hyatt Hotels here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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