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In the last quarter, earnings and net revenues topped the Zacks Consensus Estimate by 14.1% and 0.9%, respectively. Moreover, on a year-over-year basis, the top and bottom lines grew.
TNL’s earnings surpassed expectations in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 15.9%.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter adjusted earnings per share has trended downward to $1.39 from $1.40 in the past 60 days. The consensus estimate indicates 4.5% growth from the year-ago quarter’s reported earnings of $1.33 per share.
The consensus mark for net revenues is pegged at $984.4 million, indicating 3.7% growth from the year-ago quarter’s reported level.
Factors to Note
The top line of Travel + Leisure for the to-be-reported quarter is expected to have improved year over year on the back of increased tours and growth in new owner tours. Its Vacation Ownership segment is likely to have contributed to the uptrend primarily due to an increase in net vacation ownership interest (“VOI”) sales as a result of the increased tours. The uptick is likely to have been partially offset by a decline in volume per guest (“VPG”) due to a higher mix of new owners, which generally produces lower VPGs and a decreased close rate.
For the second quarter, the company expects its gross VOI sales between $580 million and $610 million, whereas it reported $557 million in the year-ago quarter. VPG is expected between $2,900 and $3,000, indicating a downturn from the $3,150 reported in the prior-year quarter.
Soft contributions from the Travel and Membership segment, attributable to lower transactions, are expected to have been an added headwind. This headwind is likely to have been partially offset by increased revenue per transaction resulting from price increases.
Meanwhile, the bottom line of Travel + Leisure is likely to have benefited from a decline in general and administrative expenses, along with lower operating costs in the Travel and Membership segment. Also, leverage from the increased top line is likely to have favored the uptrend.
The company expects Travel and Membership adjusted EBITDA between $60 million and $65 million, whereas it reported $62 million a year ago.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Travel + Leisure this time around. The company does not have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: Travel + Leisure has an Earnings ESP of 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: TNL currently carries a Zacks Rank of 2.
Stocks Poised to Beat Earnings
Here are some companies in the Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat in their respective quarters.
MGM’s earnings for the second quarter of 2024 are expected to increase 13.6%. The company reported better-than-expected earnings in the last four quarters, the average surprise being 27.3%.
Hilton Grand Vacations (HGV - Free Report) has an Earnings ESP of +16.12% and it flaunts a Zacks Rank of 1 at present.
HGV’s earnings for the second quarter are expected to rise 4.7%. The company reported better-than-expected earnings in the trailing four quarters, the average surprise being 7.2%.
Marriott International (MAR - Free Report) currently has an Earnings ESP of +6.24% and a Zacks Rank of 2.
MAR’s earnings topped the Zacks Consensus Estimate in three of the last four quarters and missed on the remaining occasion, the average surprise being 17.6%. Earnings for the second quarter are expected to increase 10.2% year over year.
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Travel + Leisure (TNL) to Report Q2 Earnings: What's in Store?
Travel + Leisure Co. (TNL - Free Report) is scheduled to report results for the second quarter of 2024 on Jul 24, before market open.
In the last quarter, earnings and net revenues topped the Zacks Consensus Estimate by 14.1% and 0.9%, respectively. Moreover, on a year-over-year basis, the top and bottom lines grew.
TNL’s earnings surpassed expectations in three of the trailing four quarters and missed on the remaining occasion, the average surprise being 15.9%.
Q2 Estimates
The Zacks Consensus Estimate for second-quarter adjusted earnings per share has trended downward to $1.39 from $1.40 in the past 60 days. The consensus estimate indicates 4.5% growth from the year-ago quarter’s reported earnings of $1.33 per share.
Travel + Leisure Co. Price and EPS Surprise
Travel + Leisure Co. price-eps-surprise | Travel + Leisure Co. Quote
The consensus mark for net revenues is pegged at $984.4 million, indicating 3.7% growth from the year-ago quarter’s reported level.
Factors to Note
The top line of Travel + Leisure for the to-be-reported quarter is expected to have improved year over year on the back of increased tours and growth in new owner tours. Its Vacation Ownership segment is likely to have contributed to the uptrend primarily due to an increase in net vacation ownership interest (“VOI”) sales as a result of the increased tours. The uptick is likely to have been partially offset by a decline in volume per guest (“VPG”) due to a higher mix of new owners, which generally produces lower VPGs and a decreased close rate.
For the second quarter, the company expects its gross VOI sales between $580 million and $610 million, whereas it reported $557 million in the year-ago quarter. VPG is expected between $2,900 and $3,000, indicating a downturn from the $3,150 reported in the prior-year quarter.
Soft contributions from the Travel and Membership segment, attributable to lower transactions, are expected to have been an added headwind. This headwind is likely to have been partially offset by increased revenue per transaction resulting from price increases.
Meanwhile, the bottom line of Travel + Leisure is likely to have benefited from a decline in general and administrative expenses, along with lower operating costs in the Travel and Membership segment. Also, leverage from the increased top line is likely to have favored the uptrend.
The company expects Travel and Membership adjusted EBITDA between $60 million and $65 million, whereas it reported $62 million a year ago.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Travel + Leisure this time around. The company does not have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: Travel + Leisure has an Earnings ESP of 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: TNL currently carries a Zacks Rank of 2.
Stocks Poised to Beat Earnings
Here are some companies in the Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to post an earnings beat in their respective quarters.
MGM Resorts International (MGM - Free Report) currently has an Earnings ESP of +17.45% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
MGM’s earnings for the second quarter of 2024 are expected to increase 13.6%. The company reported better-than-expected earnings in the last four quarters, the average surprise being 27.3%.
Hilton Grand Vacations (HGV - Free Report) has an Earnings ESP of +16.12% and it flaunts a Zacks Rank of 1 at present.
HGV’s earnings for the second quarter are expected to rise 4.7%. The company reported better-than-expected earnings in the trailing four quarters, the average surprise being 7.2%.
Marriott International (MAR - Free Report) currently has an Earnings ESP of +6.24% and a Zacks Rank of 2.
MAR’s earnings topped the Zacks Consensus Estimate in three of the last four quarters and missed on the remaining occasion, the average surprise being 17.6%. Earnings for the second quarter are expected to increase 10.2% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.