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 Hilton Grand Vacations (NYSE:HGV).
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 Q4. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 3.6% above.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.3% since the latest earnings results.
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 $1.28 billion, up 26% year on year. This print exceeded analysts’ expectations by 0.9%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates.
“We’re excited to report a strong finish to another productive year, highlighted by the successful closing and integration of our Bluegreen Vacations acquisition,” said Mark Wang, CEO of Hilton Grand Vacations.
Hilton Grand Vacations pulled off the fastest revenue growth of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $40.10.
Read our full report on Hilton Grand Vacations here, it’s free.
Best Q4: Playa Hotels & Resorts (NASDAQ:PLYA)
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.
Playa Hotels & Resorts reported revenues of $218.9 million, down 9.7% year on year, outperforming analysts’ expectations by 1.3%. The business had a very strong quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $13.33.
Is now the time to buy Playa Hotels & Resorts? 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 17.1% since the results and currently trades at $134.51.
Read our full analysis of Hyatt Hotels’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 $389.8 million, up 8.8% year on year. This print topped analysts’ expectations by 2.8%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ adjusted operating income estimates and full-year EBITDA guidance topping analysts’ expectations.
The stock is down 2.4% since reporting and currently trades at $144.12.
Read our full, actionable report on Choice Hotels here, it’s free.
Travel + Leisure (NYSE:TNL)
Formerly known as Wyndham Destinations, Travel + Leisure (NYSE:TNL) is a global vacation company that provides travelers with vacation ownership, exchange, and travel services.
Travel + Leisure reported revenues of $971 million, up 3.9% year on year. This number surpassed analysts’ expectations by 1.2%. Aside from that, it was a mixed quarter as it also recorded a decent beat of analysts’ adjusted operating income estimates but a miss of analysts’ tours conducted estimates.
The stock is down 6.5% since reporting and currently trades at $53.69.
Read our full, actionable report on Travel + Leisure here, it’s free.
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.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.