NEW YORK - Travel + Leisure Co. (NYSE: TNL), the world's leading membership and leisure travel company, has surpassed analyst expectations for the first quarter of 2024, reporting an adjusted earnings per share (EPS) of $0.97, which is $0.12 higher than the consensus estimate of $0.85.
The company's revenue for the quarter stood at $916 million, exceeding the consensus estimate of $905.85 million and marking a robust start to the year.
The company's net income reached $66 million, with diluted earnings per share at $0.92 on a net revenue of $916 million. The adjusted EBITDA for the first quarter was $191 million.
Compared to the same quarter last year, Vacation Ownership revenue saw a 6% increase to $725 million. Net vacation ownership interest (VOI) sales also rose from $338 million in the previous year to $369 million.
President and CEO Michael D. Brown highlighted the company's 15% increase in tours and 28% growth in new owner tours, with volume per guest surpassing $3,000. Brown credited the company's strong team and execution of growth plans, noting a 7% increase in owner room nights for the remainder of the year, which sets a positive tone for the upcoming summer travel season.
For the second quarter of 2024, Travel + Leisure Co. expects adjusted EBITDA to be between $235 million and $245 million. The company also reaffirms its full-year guidance, with adjusted EBITDA projected to be between $910 million and $930 million. The anticipated gross VOI sales range from $2.25 billion to $2.35 billion, with a VPG between $2,900 and $3,000.
Despite the positive financial results, no significant stock movement was reported, and the driver of the move was not applicable.
The first quarter's performance was partially offset by increased marketing costs to support the rise in tour flow and new owner mix, higher sales and commission expenses due to increased gross VOI sales, and rising interest rates on the company's asset-backed securities (ABS) debt. However, the company remains confident in meeting its 2024 commitments, as stated by CEO Brown.
Travel + Leisure Co. continues to execute its strategy for growth and shareholder value, as evidenced by the planned recommendation of a second-quarter dividend of $0.50 per share, pending Board of Directors approval.
InvestingPro Insights
Travel + Leisure Co. (NYSE: TNL) has not only exceeded analyst expectations for Q1 2024 but also shows promising signs from an investment standpoint. With a market cap of approximately $3.28 billion and a P/E ratio of 8.66, the company is positioned in a favorable light in terms of valuation. The adjusted P/E ratio for the last twelve months as of Q4 2023 stands even lower at 7.96, suggesting that the company may be undervalued relative to its earnings.
Adding to the positive outlook, Travel + Leisure Co. has maintained a dividend yield of 4.34%, a compelling figure for income-seeking investors. This is further bolstered by a notable dividend growth of 25% in the last twelve months as of Q4 2023, reflecting the company's commitment to returning value to shareholders. The consistent dividend payouts for 18 consecutive years, as highlighted in one of the InvestingPro Tips, underscore the company's financial stability and reliability as an income stock.
Investors should also note the stock's strong performance with a three-month price total return of 18.17% and a six-month surge of 41.09%. These figures indicate robust short-term growth, aligning with another InvestingPro Tip that mentions a large price uptick over the last six months. For those looking to delve deeper into the company's investment potential, InvestingPro offers additional tips, including insights into management's share buybacks and the company's liquidity position.
Interested readers can explore further with a subscription to InvestingPro, where they can access a total of 10 InvestingPro Tips for Travel + Leisure Co., which provide a comprehensive analysis of the company's financial health and stock performance. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain insights that could help inform investment decisions.
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