The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how travel and vacation providers stocks fared in Q3, 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 16 travel and vacation providers stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was 0.9% below.
Luckily, travel and vacation providers stocks have performed well with share prices up 14.1% on average since the latest earnings results.
Weakest Q3: 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 $764.7 million, up 3.3% year on year. This print fell short of analysts’ expectations by 1.4%. Overall, it was a slower quarter for the company with a significant miss of analysts’ EPS and airline bookings estimates.
Sabre delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 9.7% since reporting and currently trades at $3.72.
Read our full report on Sabre here, it’s free.
Best Q3: 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 $183.5 million, down 13.9% year on year, outperforming analysts’ expectations by 4.1%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 7.9% since reporting. It currently trades at $9.72.
Is now the time to buy Playa Hotels & Resorts? Access our full analysis of the earnings results here, it’s free.
Delta Air Lines (NYSE:DAL)
One of the ‘Big Four’ airlines in the US, Delta Air Lines (NYSE:DAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.
Delta Air Lines reported revenues of $14.59 billion, flat year on year, falling short of analysts’ expectations by 4.6%. It was a slower quarter as it posted a miss of analysts’ EBITDA estimates.
Delta Air Lines delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 25% since the results and currently trades at $63.76.
Read our full analysis of Delta Air Lines’s results here.
Marriott (NASDAQ:MAR)
Founded by J. Willard Marriott in 1927, Marriott International (NASDAQ:MAR) is a global hospitality company with a portfolio of over 7,000 properties and 30 brands, spanning 130+ countries and territories.
Marriott reported revenues of $6.26 billion, up 5.5% year on year. This print met analysts’ expectations. More broadly, it was a slower quarter as it produced a miss of analysts’ EPS estimates and EBITDA guidance for next quarter missing analysts’ expectations.
The stock is up 10.6% since reporting and currently trades at $288.18.
Read our full, actionable report on Marriott here, it’s free.
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 $1.31 billion, up 10% year on year. This number beat analysts’ expectations by 3.5%. It was a strong quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EBITDA estimates.
The stock is up 18% since reporting and currently trades at $100.
Read our full, actionable report on Marriott Vacations 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 has 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 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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