Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Playa Hotels & Resorts (NASDAQ:PLYA) and the best and worst performers in the hotels, resorts and cruise lines industry.
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. However, hotels, resorts and cruise lines stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
Playa Hotels & Resorts (NASDAQ:PLYA) Sporting a roster of beachfront properties, Playa Hotels & Resorts (NASDAQ:PLYA) is an owner, operator, and developer of all-inclusive resorts in prime vacation destinations.
Playa Hotels & Resorts reported revenues of $235.5 million, down 5.1% year on year. This print exceeded analysts’ expectations by 3.1%. Overall, it was a solid quarter for the company with an impressive beat of analysts’ earnings estimates.
Playa Hotels & Resorts scored the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 3.1% since reporting and currently trades at $7.88.
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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%. It was a strong quarter for the company with an impressive beat of analysts’ earnings estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $16.28.
Weakest Q2: Marriott (NASDAQ:MAR) 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 weak quarter for the company with underwhelming earnings guidance for the full year.
As expected, the stock is down 12.5% since the results and currently trades at $74.
Sabre (NASDAQ:SABR) Originally a division of American Airlines (NASDAQ:AAL), Sabre (NASDAQ:SABR) is a technology provider for the global travel and tourism industry.
Sabre reported revenues of $767.2 million, up 4% year on year, surpassing analysts’ expectations by 1.5%. Zooming out, it was a mixed quarter for the company with a decent beat of analysts’ operating margin estimates but a miss of analysts’ earnings estimates.
Sabre pulled off the highest full-year guidance raise among its peers. The stock is down 15.4% since reporting and currently trades at $2.91.
Wyndham (NYSE:NYSE:WH) Established in 1981, Wyndham (NYSE:WH) is a global hotel franchising company with over 9,000 hotels across nearly 95 countries on six continents.
Wyndham reported revenues of $367 million, up 1.4% year on year, in line with analysts’ expectations. Overall, it was a mixed quarter for the company with a decent beat of analysts’ earnings estimates.
The stock is up 11.6% since reporting and currently trades at $78.70.
This content was originally published on Stock Story
