Hospitality company Playa Hotels & Resorts (NASDAQ:PLYA) will be reporting earnings tomorrow after market hours. Here’s what investors should know.
Playa Hotels & Resorts beat analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $235.5 million, down 5.1% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ earnings estimates and a decent beat of analysts’ EBITDA 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 decline 17.3% year on year to $176.3 million, a reversal from the 4.2% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.18 per share.
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 5.9% on average.
Looking at Playa Hotels & Resorts’s peers in the travel and vacation providers segment, some have already reported their Q3 results, giving us a hint as to what we can expect. American Airlines delivered year-on-year revenue growth of 1.2%, meeting analysts’ expectations, and Norwegian Cruise Line reported revenues up 10.7%, topping estimates by 1.4%. American Airlines’s stock price was unchanged after the results, and Norwegian Cruise Line’s price followed a similar reaction.
Read our full analysis of American Airlines’s results here and Norwegian Cruise Line’s results here.
Investors in the travel and vacation providers segment have had steady hands going into earnings, with share prices up 2% on average over the last month. Playa Hotels & Resorts is up 6.4% during the same time and is heading into earnings with an average analyst price target of $10.50 (compared to the current share price of $8.33).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.