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Playa Hotels & Resorts’s (NASDAQ:PLYA) Q1 Earnings Results: Revenue In Line With Expectations

By: StockStory

May 05, 2025 at 17:18 PM EDT

PLYA Cover Image

Hospitality company Playa Hotels & Resorts (NASDAQ: PLYA) met Wall Street’s revenue expectations in Q1 CY2025, but sales fell by 11.1% year on year to $267.3 million. Its non-GAAP profit of $0.37 per share was 12% above analysts’ consensus estimates.

Is now the time to buy Playa Hotels & Resorts? Find out by accessing our full research report, it’s free.

Playa Hotels & Resorts (PLYA) Q1 CY2025 Highlights:

Revenue: $267.3 million vs analyst estimates of $267.3 million (11.1% year-on-year decline, in line)
Adjusted EPS: $0.37 vs analyst estimates of $0.33 (12% beat)
Adjusted EBITDA: $85.8 million vs analyst estimates of $87.84 million (32.1% margin, 2.3% miss)
Operating Margin: 24.5%, down from 30% in the same quarter last year
RevPAR: $449.14 at quarter end, up 5.1% year on year
Market Capitalization: $1.72 billion

Company Overview

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.

Sales Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Unfortunately, Playa Hotels & Resorts’s 7.9% annualized revenue growth over the last five years was sluggish. This was below our standard for the consumer discretionary sector and is a tough starting point for our analysis.

Playa Hotels & Resorts Quarterly Revenue

We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new property or trend. Playa Hotels & Resorts’s recent performance shows its demand has slowed as its revenue was flat over the last two years. Playa Hotels & Resorts Year-On-Year Revenue Growth

We can dig further into the company’s revenue dynamics by analyzing its revenue per available room, which clocked in at $449.14 this quarter and is a key metric accounting for daily rates and occupancy levels. Over the last two years, Playa Hotels & Resorts’s revenue per room averaged 7.8% year-on-year growth. Because this number is better than its revenue growth, we can see its room bookings outperformed its sales from other areas like restaurants, bars, and amenities. Playa Hotels & Resorts Revenue Per Available Room

This quarter, Playa Hotels & Resorts reported a rather uninspiring 11.1% year-on-year revenue decline to $267.3 million of revenue, in line with Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 8.8% over the next 12 months. While this projection indicates its newer products and services will fuel better top-line performance, it is still below the sector average.

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Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

Playa Hotels & Resorts’s operating margin has shrunk over the last 12 months, but it still averaged 17.7% over the last two years, top-notch for a consumer discretionary business. This shows it’s an efficient company that manages its expenses effectively.

Playa Hotels & Resorts Trailing 12-Month Operating Margin (GAAP)

In Q1, Playa Hotels & Resorts generated an operating profit margin of 24.5%, down 5.5 percentage points year on year. This contraction shows it was less efficient because its expenses increased relative to its revenue.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Playa Hotels & Resorts’s full-year EPS flipped from negative to positive over the last five years. This is encouraging and shows it’s at a critical moment in its life.

Playa Hotels & Resorts Trailing 12-Month EPS (Non-GAAP)

In Q1, Playa Hotels & Resorts reported EPS at $0.37, down from $0.40 in the same quarter last year. Despite falling year on year, this print easily cleared analysts’ estimates. Over the next 12 months, Wall Street expects Playa Hotels & Resorts’s full-year EPS of $0.57 to grow 8.5%.

Key Takeaways from Playa Hotels & Resorts’s Q1 Results

It was encouraging to see Playa Hotels & Resorts beat analysts’ EPS expectations this quarter. On the other hand, its EBITDA missed. Overall, this print was mixed. The stock remained flat at $13.42 immediately after reporting.

Big picture, is Playa Hotels & Resorts a buy here and now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

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