Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Target Hospitality (NASDAQ:TH) 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 mixed Q1. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was 4.6% above.
Luckily, travel and vacation providers stocks have performed well with share prices up 14.9% on average since the latest earnings results.
Target Hospitality (NASDAQ:TH)
Building mini-communities at places such as oil drilling sites, Target Hospitality (NASDAQ:TH) is a provider of specialty workforce lodging accommodations and services.
Target Hospitality reported revenues of $69.9 million, down 34.5% year on year. This print exceeded analysts’ expectations by 7%. It was a good quarter for the company with a decent beat of analysts’ EBITDA estimates.
"We delivered a strong first quarter marked by sound business fundamentals and continued momentum executing on recent contract wins. We are pleased with the pace of activity on our Workforce Hub Contract and reactivation of our Dilley, Texas assets, reinforcing our confidence and ability to appropriately respond to customer demand," stated Brad Archer, President and Chief Executive Officer.
Target Hospitality delivered the weakest full-year guidance update of the whole group. The stock is down 2.2% since reporting and currently trades at $6.94.
Is now the time to buy Target Hospitality? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $179.7 million, up 17% year on year, outperforming analysts’ expectations by 18.8%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Lindblad Expeditions pulled off the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 27.9% since reporting. It currently trades at $11.65.
Is now the time to buy Lindblad Expeditions? Access our full analysis of the earnings results here, it’s free.
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 $1.15 billion, flat year on year, falling short of analysts’ expectations by 7.6%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.
Hilton Grand Vacations delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 19% since the results and currently trades at $40.
Read our full analysis of Hilton Grand Vacations’s results here.
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 $37.58 million, down 86.3% year on year. This number came in 3.5% below analysts' expectations. It was a softer quarter as it also recorded a significant miss of analysts’ EPS and EBITDA estimates.
Pursuit had the slowest revenue growth among its peers. The stock is down 1.5% since reporting and currently trades at $29.21.
Read our full, actionable report on Pursuit here, it’s free.
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 $1.72 billion, flat year on year. This print topped analysts’ expectations by 2%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.
The stock is up 18.9% since reporting and currently trades at $133.95.
Read our full, actionable report on Hyatt Hotels here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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