As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the travel and vacation providers industry, including Delta Air Lines (NYSE:DAL) and its peers.
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 19 travel and vacation providers stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 6.9% above.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13.4% since the latest earnings results.
Delta Air Lines (NYSE:DAL)
One of the ‘Big Four’ airlines in the US, Delta Air Lines (NYSE:DAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.
Delta Air Lines reported revenues of $15.56 billion, up 9.4% year on year. This print exceeded analysts’ expectations by 4.5%. Overall, it was a strong quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and revenue guidance for next quarter exceeding analysts’ expectations.
The stock is down 25.1% since reporting and currently trades at $46.01.
Is now the time to buy Delta Air Lines? Access our full analysis of the earnings results here, it’s free.
Best Q4: Pursuit (NYSE:PRSU)
With attractions ranging from glacier tours in the Canadian Rockies to an oceanfront geothermal lagoon in Iceland, Pursuit Attractions and Hospitality (NYSE:PRSU) operates iconic travel experiences, experiential marketing services, and exhibition management across North America and Europe.
Pursuit reported revenues of $45.8 million, down 84.3% year on year, outperforming analysts’ expectations by 8.8%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and full-year EBITDA guidance exceeding analysts’ expectations.
The market seems content with the results as the stock is up 1.5% since reporting. It currently trades at $37.70.
Is now the time to buy Pursuit? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Hyatt Hotels (NYSE:H)
Founded in 1957, Hyatt Hotels (NYSE:H) is a global hospitality company with a portfolio of 20 premier brands and over 950 properties across 65 countries.
Hyatt Hotels reported revenues of $1.60 billion, down 3.5% year on year, falling short of analysts’ expectations by 3.1%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
Hyatt Hotels delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 23.5% since the results and currently trades at $124.07.
Read our full analysis of Hyatt Hotels’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 $14.7 billion, up 7.8% year on year. This print topped analysts’ expectations by 2.1%. It was a strong quarter as it also put up a decent beat of analysts’ adjusted operating income and EPS estimates.
The stock is down 33.6% since reporting and currently trades at $73.46.
Read our full, actionable report on United Airlines here, it’s free.
American Airlines (NASDAQ:AAL)
One of the ‘Big Four’ airlines in the US, American Airlines (NASDAQ:AAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.
American Airlines reported revenues of $13.66 billion, up 4.6% year on year. This number beat analysts’ expectations by 2%. More broadly, it was a slower quarter as it produced full-year EPS guidance missing analysts’ expectations.
The stock is down 40.5% since reporting and currently trades at $11.12.
Read our full, actionable report on American Airlines here, it’s free.
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