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Hotels, Resorts and Cruise Lines Stocks Q4 Teardown: Carnival (NYSE:CCL) Vs The Rest


Kayode Omotosho /
2024/06/17 5:07 am EDT

Wrapping up Q4 earnings, we look at the numbers and key takeaways for the hotels, resorts and cruise lines stocks, including Carnival (NYSE:CCL) 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 an ok Q4; on average, revenues beat analyst consensus estimates by 1.4%. while next quarter's revenue guidance was 0.8% below consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and hotels, resorts and cruise lines stocks have had a rough stretch, with share prices down 6% on average since the previous earnings results.

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 $5.41 billion, up 22% year on year, in line with analysts' expectations. It was a strong quarter for the company, with an impressive beat of analysts' operating margin estimates and a solid beat of analysts' earnings estimates.

"This has been a fantastic start to the year. We delivered another strong quarter that outperformed guidance on every measure, while concluding a monumental wave season that achieved all-time high booking volumes at considerably higher prices," commented Carnival Corporation & plc's Chief Executive Officer Josh Weinstein.

Carnival Total Revenue

The stock is down 9.7% since the results and currently trades at $15.38.

Is now the time to buy Carnival? Access our full analysis of the earnings results here, it's free.

Best Q4: 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 $300.6 million, up 9.8% year on year, outperforming analysts' expectations by 6.3%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings and operating margin estimates.

Playa Hotels & Resorts Total Revenue

Playa Hotels & Resorts scored the biggest analyst estimates beat among its peers. The stock is down 11.7% since the results and currently trades at $8.34.

Is now the time to buy Playa Hotels & Resorts? Access our full analysis of the earnings results here, it's free.

Weakest Q4: Choice Hotels (NYSE:CHH)

With almost 100% of its properties under franchise agreements, Choice Hotels (NYSE:CHH) is a hotel franchisor known for its diverse brand portfolio including Comfort Inn, Quality Inn, and Clarion.

Choice Hotels reported revenues of $331.9 million, down 0.3% year on year, falling short of analysts' expectations by 3.2%. It was a weak quarter for the company, with a miss of analysts' revenue estimates and underwhelming earnings guidance for the full year.

Choice Hotels had the weakest performance against analyst estimates in the group. The stock is down 5.6% since the results and currently trades at $115.34.

Read our full analysis of Choice Hotels's results here.

Hilton Grand Vacations (NYSE:HGV)

Spun off from Hilton Worldwide in 2017, Hilton Grand Vacations (NYSE:HGV) is a global timeshare company that provides travel experiences for its customers through its timeshare resorts and club membership programs.

Hilton Grand Vacations reported revenues of $1.16 billion, up 23.8% year on year, surpassing analysts' expectations by 2.8%. It was a strong quarter for the company: Hilton Grand Vacations blew past analysts' operating margin expectations. Its number of members also outperformed Wall Street's estimates.

The stock is down 8.2% since the results and currently trades at $39.86.

Read our full, actionable report on Hilton Grand Vacations here, it's free.

Norwegian Cruise Line (NYSE:NCLH)

With amenities like a full go-kart race track built into its ships, Norwegian Cruise Line (NYSE:NCLH) is a premier global cruise company.

Norwegian Cruise Line reported revenues of $2.19 billion, up 20.3% year on year, falling short of analysts' expectations by 2%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' operating margin estimates.

The stock is down 12.1% since the results and currently trades at $16.63.

Read our full, actionable report on Norwegian Cruise Line here, it's free.

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