As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the travel and vacation providers industry, including Hilton Grand Vacations (NYSE: HGV) and its peers.
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.
Thankfully, share prices of the companies have been resilient as they are up 7.4% on average since the latest earnings results.
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. This print fell short of analysts’ expectations by 8.1%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income and EPS estimates.
Hilton Grand Vacations delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 7% since reporting and currently trades at $47.22.
Read our full report on Hilton Grand Vacations 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 23.3% since reporting. It currently trades at $37.03.
Is now the time to buy Pursuit? Access our full analysis of the earnings results here, it’s free.
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, falling short of analysts’ expectations by 7%. It was a disappointing quarter as it posted a miss of analysts’ total bookings estimates and full-year EBITDA guidance missing analysts’ expectations significantly.
As expected, the stock is down 41.5% since the results and currently trades at $1.76.
Read our full analysis of Sabre’s results here.
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 $6.33 billion, up 9.5% year on year. This result beat analysts’ expectations by 1.7%. Overall, it was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 34.2% since reporting and currently trades at $32.26.
Read our full, actionable report on Carnival here, it’s free.
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 $167.9 million, up 23% year on year. This number surpassed analysts’ expectations by 5.6%. It was a very strong quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Lindblad Expeditions delivered the fastest revenue growth but had the weakest full-year guidance update among its peers. The stock is up 27.8% since reporting and currently trades at $15.
Read our full, actionable report on Lindblad Expeditions here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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