The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Sabre (NASDAQ:SABR) and the rest of the travel and vacation providers stocks fared in Q3.
Airlines, 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 airlines, hotel, resorts, and cruise line companies must innovate to stay relevant in a market rife with innovation.
The 17 travel and vacation providers stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 2.8% on average since the latest earnings results.
Sabre (NASDAQ:SABR)
Originally a division of American Airlines, Sabre (NASDAQ:SABR) is a technology provider for the global travel and tourism industry.
Sabre reported revenues of $715.2 million, up 3.5% year on year. This print exceeded analysts’ expectations by 1.2%. Despite the top-line beat, it was still a slower quarter for the company with a miss of analysts’ central reservation system transactions estimates and a significant miss of analysts’ EPS estimates.
Unsurprisingly, the stock is down 21.5% since reporting and currently trades at $1.57.
Read our full report on Sabre here, it’s free for active Edge members.
Best Q3: Lindblad Expeditions (NASDAQ:LIND)
Founded by explorer Sven-Olof Lindblad in 1979, Lindblad Expeditions (NASDAQ:LIND) offers cruising experiences to remote destinations in partnership with National Geographic.
Lindblad Expeditions reported revenues of $240.2 million, up 16.6% year on year, outperforming analysts’ expectations by 4.6%. The business had a very strong quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Lindblad Expeditions scored the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 11.1% since reporting. It currently trades at $13.56.
Is now the time to buy Lindblad Expeditions? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: 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 $1.3 billion, flat year on year, falling short of analysts’ expectations by 5%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.
Hilton Grand Vacations delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 2% since the results and currently trades at $43.26.
Read our full analysis of Hilton Grand Vacations’s results here.
United Airlines (NASDAQ:UAL)
Founded in 1926, United Airlines Holdings (NASDAQ:UAL) operates a global airline network, providing passenger and cargo air transportation services across domestic and international routes.
United Airlines reported revenues of $15.23 billion, up 2.6% year on year. This print was in line with analysts’ expectations. It was a strong quarter as it also recorded EPS guidance for next quarter exceeding analysts’ expectations and a decent beat of analysts’ adjusted operating income estimates.
The stock is up 2.7% since reporting and currently trades at $108.32.
Read our full, actionable report on United Airlines here, it’s free for active Edge members.
Wyndham (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 $382 million, down 3.5% year on year. This number missed analysts’ expectations by 4.8%. Overall, it was a slower quarter as it also logged a significant miss of analysts’ revenue estimates and full-year EBITDA guidance missing analysts’ expectations.
Wyndham had the slowest revenue growth among its peers. The stock is down 5.8% since reporting and currently trades at $75.69.
Read our full, actionable report on Wyndham here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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