As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the travel and vacation providers industry, including Hilton (NYSE: HLT) 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 19 travel and vacation providers stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was 4.6% above.
Thankfully, share prices of the companies have been resilient as they are up 9.7% on average since the latest earnings results.
Hilton (NYSE: HLT)
Founded in 1919, Hilton Worldwide (NYSE: HLT) is a global hospitality company with a portfolio of hotel brands.
Hilton reported revenues of $2.70 billion, up 4.7% year on year. This print fell short of analysts’ expectations by 0.9%. Overall, it was a mixed quarter for the company with a decent beat of analysts’ EPS estimates but EBITDA guidance for next quarter missing analysts’ expectations.
Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, "We are pleased with our first quarter results, with strong bottom line performance, even with somewhat weaker macroeconomic conditions. Additionally, we expect our industry-leading brands and powerful commercial engines to continue to drive strong net unit growth. Overall, we remain optimistic about our growth opportunities and are well positioned to continue creating value for our stakeholders in 2025 and beyond. "
Interestingly, the stock is up 14.9% since reporting and currently trades at $254.73.
Is now the time to buy Hilton? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $179.7 million, up 17% year on year, outperforming analysts’ expectations by 18.8%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Lindblad Expeditions delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 12.7% since reporting. It currently trades at $10.27.
Is now the time to buy Lindblad Expeditions? Access our full analysis of the earnings results here, it’s free.
Slowest Q1: 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 $1.15 billion, flat year on year, falling short of analysts’ expectations by 7.6%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
Hilton Grand Vacations delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 14.8% since the results and currently trades at $38.59.
Read our full analysis of Hilton Grand Vacations’s results here.
Hyatt Hotels (NYSE: H)
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 $1.72 billion, flat year on year. This result topped analysts’ expectations by 2%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.
The stock is up 13.2% since reporting and currently trades at $127.54.
Read our full, actionable report on Hyatt Hotels here, it’s free.
Royal Caribbean (NYSE: RCL)
Established in 1968, Royal Caribbean Cruises (NYSE: RCL) is a global cruise vacation company renowned for its innovative and exciting cruise experiences.
Royal Caribbean reported revenues of $4.00 billion, up 7.3% year on year. This number was in line with analysts’ expectations. It was a satisfactory quarter as it also logged a decent beat of analysts’ EPS estimates.
The stock is up 9.8% since reporting and currently trades at $238.40.
Read our full, actionable report on Royal Caribbean 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 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 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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