Q2 Earnings Highs And Lows: Marriott Vacations (NYSE:VAC) Vs The Rest Of The Hotels, Resorts and Cruise Lines Stocks

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 hotels, resorts and cruise lines stocks fared in Q2, starting with Marriott Vacations (NYSE:VAC).

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 hotel, resorts, and cruise line companies must innovate to stay relevant in a market rife with innovation.

The 15 hotels, resorts and cruise lines stocks we track reported a mixed Q2. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and while some hotels, resorts and cruise lines stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.7% since the latest earnings results.

Weakest Q2: 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 $1.14 billion, down 3.2% year on year. This print fell short of analysts’ expectations by 5.9%. Overall, it was a disappointing quarter for the company with underwhelming earnings guidance for the full year and a miss of analysts’ operating margin estimates.

“We had a mixed second quarter, with rentals exceeding our expectations and lower VPGs negatively impacting our contract sales. In addition, we have not seen the necessary improvements in our loan delinquencies, so we increased our sales reserves to reflect higher expected defaults,” said John Geller, president and chief executive officer.

Unsurprisingly, the stock is down 17.9% since reporting and currently trades at $69.44.

Read our full report on Marriott Vacations here, it’s free.

Best Q2: Carnival (NYSE:CCL)

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 $5.78 billion, up 17.7% year on year, outperforming analysts’ expectations by 1.9%. The business had an exceptional quarter with an impressive beat of analysts’ earnings estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2% since reporting. It currently trades at $16.07.

Is now the time to buy Carnival? Access our full analysis of the earnings results here, it’s free.

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 $1.24 billion, up 22.6% year on year, falling short of analysts’ expectations by 7.7%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.

Hilton Grand Vacations delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. As expected, the stock is down 9.5% since the results and currently trades at $34.93.

Read our full analysis of Hilton Grand Vacations’s results here.

Norwegian Cruise Line (NYSE:NCLH)

With amenities like a full go-kart race track built into its ships, Norwegian Cruise Line (NYSE:NCLH) is a premier global cruise company.

Norwegian Cruise Line reported revenues of $2.37 billion, up 7.6% year on year. This number was in line with analysts’ expectations. Overall, it was a strong quarter as it also recorded optimistic earnings guidance for the full year and a solid beat of analysts’ earnings estimates.

The stock is down 4.7% since reporting and currently trades at $17.70.

Read our full, actionable report on Norwegian Cruise Line 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 $4.11 billion, up 16.7% year on year. This print surpassed analysts’ expectations by 1.6%. Overall, it was a strong quarter as it also logged optimistic earnings guidance for the next quarter and a decent beat of analysts’ earnings estimates.

The stock is down 3.9% since reporting and currently trades at $158.27.

Read our full, actionable report on Royal Caribbean here, it’s free.

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