Travel + Leisure (NYSE:TNL) Releases Earnings Results, Beats Estimates By $0.16 EPS

Key Points

• Travel + Leisure beat expectations: Third-quarter EPS was $2.21 versus the $2.05 consensus, while revenue reached $1.10 billion, up 5.5% year over year.
• Management raised its outlook: Gross VOI sales, EBITDA, and EPS guidance were increased, supported by acquisitions, brand expansion, and improving consumer-credit trends.
• Shares declined despite strong results: The stock fell 2% to $64.29, while the company maintained a $0.60 quarterly dividend, equivalent to a 3.7% yield; analysts’ consensus rating remained “Moderate Buy.”

Travel + Leisure (NYSE:TNL - Get Free Report) announced its earnings results on Tuesday. The company reported $2.21 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 analysts' expectations of $1.08 billion. Travel + Leisure had a net margin of 5.81% and a negative return on equity of 46.91%. The company's quarterly revenue was up 5.5% on a year-over-year basis. During the same period in the previous year, the company posted $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 Trading Down 2.0%

Shares of Travel + Leisure stock traded down $1.33 during trading hours on Tuesday, hitting $64.29. 126,266 shares of the company were exchanged, compared to its average volume of 744,499. Travel + Leisure has a 1 year low of $60.34 and a 1 year high of $81.00. The business has a 50-day moving average of $66.05 and a 200-day moving average of $70.58. The stock has a market capitalization of $3.93 billion, a price-to-earnings ratio of 17.56, a P/E/G ratio of 0.66 and a beta of 1.19.

Travel + Leisure Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th were paid a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a dividend yield of 3.7%. The ex-dividend date was Wednesday, September 16th. Travel + Leisure's dividend payout ratio is 65.57%.

Insider Buying and Selling at Travel + Leisure

In related news, CAO Thomas Michael Duncan sold 20,000 shares of Travel + Leisure stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $74.16, for a total value of $1,483,200.00. Following the transaction, the chief accounting officer directly owned 5,307 shares in the company, valued at $393,567.12. This trade represents a 79.03% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 4.01% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of brokerages recently weighed in on TNL. Weiss Ratings reiterated a "buy (b-)" rating on shares of Travel + Leisure in a research note on Monday, October 19th. Zacks Research downgraded shares of Travel + Leisure from a "hold" rating to a "strong sell" rating in a research report on Thursday, October 22nd. JPMorgan Chase & Co. started coverage on shares of Travel + Leisure in a research note on Thursday, October 8th. They issued a "neutral" rating and a $70.00 price objective on the stock. The Goldman Sachs Group reduced their target price on shares of Travel + Leisure from $87.00 to $78.00 and set a "buy" rating for the company in a report on Thursday, October 15th. Finally, Truist Financial decreased their target price on shares of Travel + Leisure from $88.00 to $86.00 and set a "buy" rating for the company in a research note on Thursday, September 10th. Eleven investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $85.25.

About Travel + Leisure

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.

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