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Let’s dig into the relative performance of Target Hospitality (NASDAQ:TH) and its peers as we unravel the now-completed Q4 travel and vacation providers earnings season.
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 6.9% above.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 17.1% since the latest earnings results.
Target Hospitality (NASDAQ:TH)
Building mini-communities at places such as oil drilling sites, Target Hospitality (NASDAQ:TH) is a provider of specialty workforce lodging accommodations and services.
Target Hospitality reported revenues of $83.69 million, down 33.7% year on year. This print exceeded analysts’ expectations by 4.5%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.
"Our 2024 performance further illustrates our ability to deliver strong results through a variety of business cycles and dynamic changes in customer demand. This operational flexibility has consistently supported the achievement of our financial goals, while allowing us to simultaneously remain focused on pursuing strategic growth initiatives," stated Brad Archer, President and Chief Executive Officer.
Target Hospitality delivered the weakest full-year guidance update of the whole group. The stock is up 6.7% since reporting and currently trades at $6.54.
Is now the time to buy Target Hospitality? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $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.