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 Q2. Today, we are looking at travel and vacation providers stocks, starting with Sabre (NASDAQ: SABR).
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 18 travel and vacation providers stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 2.4% on average since the latest earnings results.
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 $687.1 million, down 1.1% year on year. This print fell short of analysts’ expectations by 7%. Overall, it was a disappointing quarter for the company with full-year EBITDA guidance missing analysts’ expectations.
Unsurprisingly, the stock is down 38.5% since reporting and currently trades at $1.85.
Read our full report on Sabre here, it’s free.
Best Q2: 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 $116.7 million, down 69.2% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with a beat of analysts’ EPS estimates and full-year EBITDA guidance exceeding analysts’ expectations.
The market seems happy with the results as the stock is up 22.5% since reporting. It currently trades at $36.78.
Is now the time to buy Pursuit? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $1.27 billion, up 2.5% year on year, falling short of analysts’ expectations by 8.1%. It was a disappointing quarter as it posted and a significant miss of analysts’ adjusted operating income estimates.
Hilton Grand Vacations delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 15% since the results and currently trades at $43.17.
Read our full analysis of Hilton Grand Vacations’s results here.
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 $426.4 million, down 2% year on year. This print met analysts’ expectations. More broadly, it was a mixed quarter as it also recorded full-year EBITDA guidance slightly topping analysts’ expectations but a miss of analysts’ adjusted operating income estimates.
The stock is down 11.4% since reporting and currently trades at $110.86.
Read our full, actionable report on Choice Hotels here, it’s free.
Royal Caribbean (NYSE: RCL)
Established in 1968, Royal Caribbean Cruises (NYSE: RCL) is a global cruise vacation company renowned for its innovative and exciting cruise experiences.
Royal Caribbean reported revenues of $4.54 billion, up 10.4% year on year. This result was in line with analysts’ expectations. More broadly, it was a mixed quarter as it failed to impress in some other areas of the business.
The stock is down 6.9% since reporting and currently trades at $327.60.
Read our full, actionable report on Royal Caribbean here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
