Playa Hotels & Resorts Earnings: What To Look For From PLYA

Kayode Omotosho /
2024/05/05 3:03 am EDT

Hospitality company Playa Hotels & Resorts (NASDAQ:PLYA) will be reporting earnings tomorrow after market close. Here's what to expect.

Playa Hotels & Resorts beat analysts' revenue expectations by 8.8% last quarter, reporting revenues of $242.5 million, up 15% year on year. It was an incredible quarter for the company, with an impressive beat of analysts' revenue and earnings estimates.

Is Playa Hotels & Resorts a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Playa Hotels & Resorts's revenue to grow 3.3% year on year to $282.8 million, slowing from the 24.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.33 per share.

Playa Hotels & Resorts Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Playa Hotels & Resorts has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 7.2% on average.

Looking at Playa Hotels & Resorts's peers in the hotels, resorts and cruise lines segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Travel + Leisure delivered year-on-year revenue growth of 4.2%, beating analysts' expectations by 1.3%, and Lindblad Expeditions reported revenues up 7.1%, topping estimates by 2.6%. Travel + Leisure's stock price was unchanged after the resultswhile Lindblad Expeditions was up 1.2%.

Read our full analysis of Travel + Leisure's results here and Lindblad Expeditions'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 thanks to mixed inflation data, and while some of the hotels, resorts and cruise lines stocks have fared somewhat better, they have not been spared, with share prices down 3.4% on average over the last month. Playa Hotels & Resorts is down 1% during the same time and is heading into earnings with an average analyst price target of $12.7 (compared to the current share price of $9.5).

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