Travel + Leisure (TNL) Q1 Earnings Report Preview: What To Look For

Hospitality company Travel + Leisure (NYSE:TNL) will be reporting results tomorrow before market hours. Here's what investors should know.

Last quarter Travel + Leisure reported revenues of $935 million, up 4% year on year, missing analyst expectations by 1%. It was a mixed quarter for the company, with revenue missing analysts' estimates driven by underperformance in both its Vacation Ownership and Travel and Membership segments. Looking ahead, the company's full-year 2024 EBITDA guidance came ahead of analysts' estimates ($920 million vs estimates of $915 million).

Is Travel + Leisure buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Travel + Leisure's revenue to grow 2.9% year on year to $904.5 million, slowing down from the 8.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.86 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates four times over the last two years.

Looking at Travel + Leisure's peers in the consumer discretionary segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Carnival delivered top-line growth of 22% year on year, inline with analysts' estimates and Nike reported revenues up 0.3% year on year, exceeding estimates by 1.1%. Carnival traded down 4.1% on the results, and Nike was down 7%.

Read our full analysis of Carnival's results here and Nike's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share price declining 5.4% over the last month. Travel + Leisure is down 5.1% during the same time, and is heading into the earnings with with analyst price target of $52, compared to share price of $45.3.

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