Hotels, Resorts and Cruise Lines Stocks Q2 Recap: Benchmarking Lindblad Expeditions (NASDAQ:LIND)
Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Lindblad Expeditions (NASDAQ:LIND) and its peers.
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.
The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
Thankfully, hotels, resorts and cruise lines stocks have been resilient with share prices up 5.4% on average since the latest earnings results.
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 $136.5 million, up 9.4% year on year. This print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with a miss of analysts’ earnings estimates.
Sven Lindblad, Chief Executive Officer, said "We continued our growth trajectory this quarter with a 9% increase in revenue, demonstrating that more and more people are keen to explore the less traveled destinations and appreciate our dedication to providing our guests unique and valuable travel experiences.
Interestingly, the stock is up 21.1% since reporting and currently trades at $9.23.
Read our full report on Lindblad Expeditions 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.
The market seems happy with the results as the stock is up 14.3% since reporting. It currently trades at $18.73.
Is now the time to buy Carnival? Access our full analysis of the earnings results here, it’s free.
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, falling short of analysts’ expectations by 5.9%. It was a disappointing quarter as it posted underwhelming earnings guidance for the full year and a miss of analysts’ operating margin estimates.
As expected, the stock is down 11.3% since the results and currently trades at $75.05.
Read our full analysis of Marriott Vacations’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 $6.44 billion, up 6% year on year. This print was in line with analysts’ expectations. However, it was a softer quarter as it logged underwhelming earnings guidance for the full year.
The stock is up 4.5% since reporting and currently trades at $249.50.
Read our full, actionable report on Marriott here, it’s free.
Target Hospitality (NASDAQ:TH)
Essentially a builder of mini communities, Target Hospitality (NASDAQ:TH) is a provider of specialty workforce lodging accommodations and services.
Target Hospitality reported revenues of $100.7 million, down 29.9% year on year. This result surpassed analysts’ expectations by 2.2%. Taking a step back, it was a softer quarter as it also logged a decent beat of analysts’ earnings estimates but full-year revenue guidance missing analysts’ expectations.
Target Hospitality had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is down 15.8% since reporting and currently trades at $7.51.
Read our full, actionable report on Target Hospitality here, it’s free.
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