Q4 Earnings Highs And Lows: Marriott Vacations (NYSE:VAC) Vs The Rest Of The Travel and Vacation Providers Stocks
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 Marriott Vacations (NYSE:VAC) 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 satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 6.8% above.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 29.9% since the latest earnings results.
Marriott Vacations (NYSE:VAC)
Spun off from Marriott International in 1984, Marriott Vacations (NYSE:VAC) is a vacation company providing leisure experiences for travelers around the world.
Marriott Vacations reported revenues of $1.33 billion, up 11.1% year on year. This print exceeded analysts’ expectations by 6.7%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates.
“We had a strong end of the year, reflecting the resilience of our leisure-focused business model and the success of the initiatives we launched last year, with contract sales growing 7% year-over-year in the fourth quarter,” said John Geller, president and chief executive officer.
Marriott Vacations Total Revenue
The stock is down 39.8% since reporting and currently trades at $51.51.
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 $45.8 million, down 84.3% year on year, outperforming analysts’ expectations by 8.8%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Pursuit Total Revenue
The stock is down 19.4% since reporting. It currently trades at $29.93.
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 35.8% since the results and currently trades at $104.17.
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 number topped analysts’ expectations by 0.9%. It was a strong quarter as it also produced a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is down 27.4% since reporting and currently trades at $15.38.
Originally a division of American Airlines, Sabre (NASDAQ:SABR) is a technology provider for the global travel and tourism industry.
Sabre reported revenues of $714.7 million, up 4% year on year. This result met analysts’ expectations. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ EPS estimates and full-year EBITDA guidance topping analysts’ expectations.
The stock is down 40% since reporting and currently trades at $2.04.
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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