Travel + Leisure (NYSE:TNL) Announces Earnings Results

Travel + Leisure (NYSE:TNL) released its quarterly earnings results on Tuesday. The company reported $2.21 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.05 by $0.16, FiscalAI reports. The business had revenue of $1.10 billion for the quarter, compared to the consensus estimate of $1.08 billion. Travel + Leisure had a net margin of 5.81% and a negative return on equity of 46.91%. The business’s revenue was up 5.5% on a year-over-year basis. During the same period in the previous year, the firm earned $1.80 EPS.

Here are the key takeaways from Travel + Leisure’s conference call:

• Positive Sentiment: Travel + Leisure reported strong third-quarter results, with revenue up 5%, EBITDA up 6%, net income up 16%, and EPS up 23% to $2.21. Management raised the midpoint of full-year gross VOI sales and EBITDA guidance and increased its EPS outlook.
• Positive Sentiment: The Yes& Vacations and Spinnaker Resorts acquisitions contributed approximately $21 million of gross VOI sales and $7 million of EBITDA in the quarter. Management expects cost synergies within 12 months and sees substantial upside from introducing Club Wyndham points and increasing upgrade activity across the acquired owner base.
• Positive Sentiment: Consumer credit trends continued to improve, with lower delinquencies and defaults, strong new-loan credit quality, and a reduced full-year loan-loss provision outlook of approximately 20% versus 21% previously. Management expects further improvement in 2027.
• Positive Sentiment: The multi-brand strategy is expanding the company’s customer reach, with Margaritaville on pace for more than $175 million in annual gross VOI sales and Accor approaching $50 million in its third year. Sports Illustrated, Eddie Bauer, and other brands are viewed as longer-term sources of new-owner growth.
• Negative Sentiment: Travel and Membership remains under pressure from declining exchange transaction activity as members increasingly stay within their clubs, despite a stable affiliate-member base. The company implemented a cost program affecting roughly 300 employees and expects approximately $16 million in annualized savings, with most benefits realized in 2027.

Travel + Leisure Stock Up 3.9%

TNL stock traded up $2.65 during midday trading on Thursday, reaching $71.03. The company had a trading volume of 122,482 shares, compared to its average volume of 749,758. The firm has a market capitalization of $4.35 billion, a PE ratio of 19.41, a P/E/G ratio of 0.66 and a beta of 1.19. Travel + Leisure has a fifty-two week low of $60.34 and a fifty-two week high of $81.00. The stock has a 50 day moving average price of $65.83 and a 200 day moving average price of $70.52.

Travel + Leisure Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th were given a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date of this dividend was Wednesday, September 16th. Travel + Leisure’s dividend payout ratio is currently 65.57%.

Analyst Ratings Changes

Several research firms recently weighed in on TNL. Citigroup restated a “market outperform” rating on shares of Travel + Leisure in a research note on Thursday, July 23rd. Barclays lowered their target price on shares of Travel + Leisure from $77.00 to $72.00 and set an “equal weight” rating on the stock in a report on Wednesday. Wells Fargo & Company decreased their price objective on shares of Travel + Leisure from $92.00 to $90.00 and set an “overweight” rating on the stock in a report on Monday, October 19th. Morgan Stanley reissued an “overweight” rating and issued a $86.00 price objective on shares of Travel + Leisure in a research note on Thursday, October 22nd. Finally, Zacks Research downgraded shares of Travel + Leisure from a “hold” rating to a “strong sell” rating in a research note on Thursday, October 22nd. Eleven analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $85.25.

Insiders Place Their Bets

In other news, CAO Thomas Michael Duncan sold 20,000 shares of Travel + Leisure stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $74.16, for a total transaction of $1,483,200.00. Following the sale, the chief accounting officer owned 5,307 shares of the company’s stock, valued at approximately $393,567.12. The trade was a 79.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 4.01% of the stock is owned by corporate insiders.

Travel + Leisure Company Profile

Travel + Leisure Co (NYSE:TNL) is a hospitality and leisure travel company that operates vacation ownership, exchange, and membership businesses. The company provides travelers with access to resort accommodations, vacation experiences, travel services, and related lifestyle offerings through a portfolio of consumer brands.

Its vacation ownership business includes brands such as Club Wyndham, WorldMark by Wyndham, and Margaritaville Vacation Club, offering members interests in vacation properties and access to resort destinations.