Financial Performance - Net income for Q4 2024 was $119 million with a diluted EPS of $1.72 on net revenue of $971 million[4] - Full-year 2024 net income reached $411 million with a diluted EPS of $5.82 on net revenue of $3.9 billion[4] - Adjusted EBITDA for Q4 2024 was $252 million, while full-year 2024 Adjusted EBITDA totaled $929 million[4] - Net income attributable to TNL shareholders for the twelve months ended December 31, 2024, was $411 million, a 4% increase from $396 million in 2023[34] - Operating income for the twelve months ended December 31, 2024, was $733 million, compared to $720 million in 2023[29] - Basic earnings per share from continuing operations for the twelve months ended December 31, 2024, increased to $5.39 from $5.24 in 2023[34] - Adjusted net income for Q4 2024 was $119 million, down from $144 million in Q4 2023[42] Revenue and Sales - Vacation Ownership revenue increased by 5% to $813 million in Q4 2024, with a 10% rise in gross VOI sales[6] - Net revenues for the three months ended December 31, 2024, increased by 4% to $971 million compared to $935 million in the same period of 2023[29] - Vacation Ownership segment net revenues increased by 5% to $813 million for the three months ended December 31, 2024, compared to $776 million in 2023[34] - Total Vacation Ownership revenue increased by 5% to $813 million in Q4 2024, compared to $776 million in Q4 2023[39] - Gross VOI sales for the twelve months ended December 31, 2024, were $2,293 million, a 7% increase from $2,149 million in 2023[39] - Gross VOI sales for 2025 are projected to be between $2.4 billion and $2.5 billion[18] Cash Flow and Capital Management - Cash flow from operating activities for full-year 2024 was $464 million, up from $350 million in the prior year[14] - The company reported a net cash provided by operating activities of $464 million for the twelve months ended December 31, 2024, compared to $350 million in 2023[33] - Free cash flow for the twelve months ended December 31, 2024, was $446 million, up from $379 million in 2023[47] - The company repurchased $70 million of common stock in Q4 2024 and $235 million for the full year[4] Debt and Leverage - The company had $3.5 billion in corporate debt and a leverage ratio of 3.3x as of December 31, 2024[11] - Total liabilities decreased to $7,615 million as of December 31, 2024, from $7,655 million in 2023[31] Dividends - A first quarter 2025 dividend of $0.56 per share is recommended for approval by the Board of Directors[4] Other Metrics - Adjusted EBITDA for the three months ended December 31, 2024, rose by 5% to $252 million, compared to $240 million in the same period of 2023[34] - Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of revenue, assisting investors in evaluating operating performance[52] - Adjusted Free Cash Flow is calculated as net cash from operating activities minus capital expenditures, indicating the ability to generate cash for growth and shareholder returns[53] - Adjusted Free Cash Flow Conversion measures Adjusted free cash flow as a percentage of Adjusted EBITDA, helping assess the quality of earnings and cash flow generation[54] - Adjusted Net Income excludes certain costs and adjustments, providing insight into ongoing operating performance[55] - Average Number of Exchange Members reflects the average number of paid members in vacation exchange programs during the reporting period[56] - Volume Per Guest (VPG) measures Gross VOI sales per tour, enhancing understanding of sales efficiency in the Vacation Ownership business[62] - Loan loss provision increased by 27% to $117 million in Q4 2024, compared to $92 million in Q4 2023[39] - The average number of exchange members decreased by 4% to 3,377 thousand in Q4 2024, compared to 3,524 thousand in Q4 2023[39] - Total assets as of December 31, 2024, were $6,735 million, slightly down from $6,738 million as of December 31, 2023[31] - Cash and cash equivalents decreased to $167 million as of December 31, 2024, from $282 million in 2023[33]

Core Viewpoint - Travel + Leisure Co. (TNL) is set to report its fourth-quarter results on February 19, 2024, with expectations of a decline in earnings per share (EPS) compared to the previous year, despite projected revenue growth [1][2]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for TNL's fourth-quarter adjusted earnings is $1.71 per share, reflecting a 13.6% decline from the prior year's earnings of $1.98 per share [2]. - The consensus estimate for net revenues is $963.6 million, indicating a 3.1% growth from the year-ago quarter [2]. Group 2: Factors Influencing Performance - TNL's top line is expected to improve year over year due to increased tours and growth in new owner tours, supported by strong volume per guest (VPG) [3]. - The company benefits from robust engagement from existing owners and strategic partnerships aimed at capturing a larger share of the vacation market [3]. Group 3: Challenges and Concerns - There is concern regarding the decline in travel membership revenues, which fell by 3% in the third quarter of 2024, highlighting challenges in adapting to industry changes and customer preferences [4]. - High costs are anticipated to negatively impact the company's bottom line [4]. Group 4: Earnings Prediction Model - The current model does not predict an earnings beat for TNL, as it has an Earnings ESP of -10.53% and a Zacks Rank of 3 (Hold) [5].

Company Performance - Travel + Leisure Co. (TNL) shares have increased by 12.8% over the past month, reaching a new 52-week high of $57.62 [1] - The company has gained 11.7% since the beginning of the year, outperforming the Zacks Consumer Discretionary sector's 2.7% and the Zacks Leisure and Recreation Services industry's 5.4% [1] Earnings and Revenue Expectations - In the last earnings report on October 23, 2024, TNL reported an EPS of $1.57, exceeding the consensus estimate of $1.49 [2] - For the current fiscal year, TNL is expected to post earnings of $6.52 per share on revenues of $3.86 billion, with a year-over-year change of 13.47% [3] - For the next fiscal year, the company is projected to earn $8.48 per share on revenues of $4.03 billion, representing a year-over-year change of 4.41% [3] Valuation Metrics - TNL currently trades at 8.6X current fiscal year EPS estimates, below the peer industry average of 19.9X [7] - On a trailing cash flow basis, TNL trades at 7.6X compared to the peer group's average of 12.1X [7] - The stock has a PEG ratio of 0.65, indicating it is not in the top echelon of stocks from a value perspective [7] Zacks Rank and Style Scores - TNL has a Zacks Rank of 2 (Buy) due to rising earnings estimates, making it a suitable choice for investors [8] - The company has a Value Score of A, while its Growth and Momentum Scores are D and D, respectively, resulting in a VGM Score of B [6] Industry Comparison - The Leisure and Recreation Services industry is in the top 32% of all industries, indicating favorable conditions for TNL and its peers [11] - Royal Caribbean Cruises Ltd. (RCL), a peer, has a Zacks Rank of 2 (Buy) and has shown strong earnings performance, with a projected EPS of $14.74 on revenues of $17.98 billion for the current fiscal year [9][10]

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Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Travel + Leisure Co. (TNL) , which belongs to the Zacks Leisure and Recreation Services industry, could be a great candidate to consider.When looking at the last two reports, this company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 7.36%, on average, in the last two quarters.For the last reported q ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companie ...

Travel + Leisure Co.’s (TNL) shares have surged 46.6% in the past year compared with the industry and the S&P 500’s growth of 26.1% and 31%, respectively.On Wednesday, the stock closed at $53.99, only 5.1% below its 52-week high but 42.1% above its 52-week low. Technical indicators imply TNL's continued strong performance. The stock is trading above its 50-day moving average, signaling robust upward momentum and price stability. This technical strength underscores positive market sentiment and confidence in ...

For the quarter ended September 2024, Travel + Leisure Co. (TNL) reported revenue of $993 million, up 0.7% over the same period last year. EPS came in at $1.57, compared to $1.54 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.01 billion, representing a surprise of -1.85%. The company delivered an EPS surprise of +5.37%, with the consensus EPS estimate being $1.49.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall ...

[PART I FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Presents Travel + Leisure Co.'s unaudited condensed consolidated financial statements for Q3 2024, including income, balance sheets, cash flows, and notes [Condensed Consolidated Statements of Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q3 2024 net revenues slightly increased to $993 million, but operating and net income attributable to shareholders decreased Condensed Consolidated Statements of Income (In millions, except per share amounts) | | **Three Months Ended Sep 30** | | **Nine Months Ended Sep 30** | | | :--- | :--- | :--- | :--- | :--- | | | **2024** | **2023** | **2024** | **2023** | | **Net revenues** | **$993** | **$986** | **$2,893** | **$2,814** | | Operating income | $189 | $207 | $527 | $529 | | Income before income taxes | $130 | $148 | $356 | $358 | | Net income from continuing operations | $97 | $110 | $260 | $262 | | **Net income attributable to shareholders** | **$97** | **$110** | **$292** | **$267** | | **Diluted EPS from continuing operations** | **$1.39** | **$1.49** | **$3.66** | **$3.46** | | **Diluted EPS** | **$1.39** | **$1.49** | **$4.11** | **$3.53** | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased slightly to **$6.70 billion** as of Sep 30, 2024, while total liabilities decreased to **$7.56 billion** Condensed Consolidated Balance Sheet Highlights (In millions) | | **Sep 30, 2024** | **Dec 31, 2023** | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $194 | $282 | | Vacation ownership contract receivables, net | $2,612 | $2,527 | | Inventory | $1,208 | $1,135 | | Goodwill | $971 | $962 | | **Total assets** | **$6,698** | **$6,738** | | **Liabilities and (Deficit)** | | | | Non-recourse vacation ownership debt | $2,029 | $2,071 | | Debt | $3,548 | $3,575 | | **Total liabilities** | **$7,559** | **$7,655** | | **Total (deficit)** | **($861)** | **($917)** | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to **$366 million** YTD 2024, while investing and financing activities used cash Cash Flow Summary for Nine Months Ended Sep 30 (In millions) | | **2024** | **2023** | | :--- | :--- | :--- | | Net cash provided by operating activities | $366 | $198 | | Net cash used in investing activities | ($101) | ($46) | | Net cash used in financing activities | ($374) | ($444) | | **Net change in cash, cash equivalents and restricted cash** | **($109)** | **($296)** | [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Details segment information, revenue recognition, the **$50 million** Accor Vacation Club acquisition, debt, and restructuring charges - The company operates through two segments: Vacation Ownership (develops, markets, and sells VOIs) and Travel and Membership (vacation exchange, travel clubs)[17](index=17&type=chunk)[18](index=18&type=chunk) - On March 1, 2024, the company acquired the Accor Vacation Club business for **$50 million** to expand its international portfolio in the Asia Pacific region[50](index=50&type=chunk) - A **$32 million** gain was recognized in the first nine months of 2024 from the expiration of guarantees related to the sale of the European vacation rentals business[56](index=56&type=chunk)[141](index=141&type=chunk) - In Q3 2024, the company initiated a restructuring plan, incurring **$14 million** in charges, primarily for personnel-related costs from a reduction of approximately 300 employees[129](index=129&type=chunk) Disaggregation of Net Revenues (Nine Months Ended Sep 30, in millions) | Segment/Category | 2024 | 2023 | | :--- | :--- | :--- | | **Vacation Ownership** | **$2,358** | **$2,265** | | - Vacation ownership interest sales | $1,265 | $1,172 | | - Property management & reimbursable | $637 | $610 | | - Consumer financing | $335 | $313 | | **Travel and Membership** | **$538** | **$553** | | - Transaction revenues | $381 | $395 | | - Subscription revenues | $134 | $137 | | **Total Net Revenues** | **$2,893** | **$2,814** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong leisure travel demand driving VOI sales, moderated VPGs, improved Travel and Membership profitability, and capital deployment [Results of Operations](index=46&type=section&id=Results%20of%20Operations) Q3 2024 net revenues increased slightly, but net income declined due to higher costs; nine-month net income rose from a disposal gain Q3 2024 vs Q3 2023 Operating Statistics | Metric | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | Gross VOI sales (in millions) | $606 | $598 | 1.3% | | Tours (in 000s) | 195 | 187 | 4.5% | | Volume per guest (VPG) | $3,012 | $3,108 | (3.1)% | | Total Transactions (in 000s) | 378 | 410 | (7.7)% | - Vacation Ownership Q3 revenue increased by **$13 million**, driven by a **4.5% increase in tours**, though VPG decreased **3.1%** due to a strategic focus on new owners[168](index=168&type=chunk) - Travel and Membership Q3 revenue decreased by **$6 million** due to lower transaction volumes, but cost savings from restructuring kept Adjusted EBITDA flat year-over-year[169](index=169&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=57&type=section&id=Financial%20Condition,%20Liquidity%20and%20Capital%20Resources) Financial condition remains stable with decreased assets and liabilities; liquidity is strong from operations, credit facility, and debt markets - As of Sep 30, 2024, the company had **$194 million** in cash and **$724 million** available under its revolving credit facility[196](index=196&type=chunk)[197](index=197&type=chunk) - The company is in compliance with its debt covenants, with an interest coverage ratio of **4.23 to 1.0** (minimum 2.50) and a first lien leverage ratio of **3.39 to 1.0** (maximum 4.25)[76](index=76&type=chunk)[77](index=77&type=chunk)[199](index=199&type=chunk) - Capital deployment YTD includes **$165 million** for share repurchases and **$108 million** for dividends; **$509 million** remains for future repurchases[222](index=222&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk) Material Cash Requirements (as of Sep 30, 2024, in millions) | Commitment | **Next 12 Months** | **Total** | | :--- | :--- | :--- | | Debt | $297 | $3,571 | | Non-recourse debt | $226 | $2,051 | | Interest on debt | $340 | $1,151 | | Purchase commitments | $273 | $695 | | Operating leases | $29 | $101 | | **Total** | **$1,165** | **$7,569** | [Item 3. Quantitative and Qualitative Disclosures About Market Risks](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) Primary market risks are interest rate and foreign currency fluctuations; a 100 basis point interest rate change would impact annual debt interest expense by **$11 million** - A **100 basis point** change in interest rates would impact annual debt interest expense by **$11 million** and consumer financing interest expense by **$4 million**[230](index=230&type=chunk) - A hypothetical **10%** change in foreign currency exchange rates would change the fair value of outstanding forward contracts by approximately **$6 million**, generally offset by the underlying exposure being hedged[229](index=229&type=chunk) [Item 4. Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2024, with no material changes to internal control - The principal executive and financial officers concluded that disclosure controls and procedures were effective as of the end of the reporting period[231](index=231&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter[231](index=231&type=chunk) [PART II OTHER INFORMATION](index=66&type=section&id=PART%20II%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=66&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings not expected to materially affect its financial condition or operations - The company is involved in ordinary course legal proceedings which are not expected to have a material adverse effect on its financial condition[233](index=233&type=chunk) [Item 1A. Risk Factors](index=66&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's Annual Report on Form 10-K for 2023 - As of September 30, 2024, no material changes have occurred to the risk factors disclosed in the 2023 Form 10-K[234](index=234&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2024, the company repurchased **1,583,100 shares** for approximately **$70 million**, with **$509 million** remaining for future repurchases Issuer Purchases of Equity Securities (Q3 2024) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 2024 | 381,642 | $46.11 | | August 2024 | 0 | N/A | | September 2024 | 1,201,458 | $43.63 | | **Total** | **1,583,100** | **$44.23** | [Item 6. Exhibits](index=68&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents - Exhibits filed include CEO and CFO certifications (31.1, 31.2, 32), a letter regarding unaudited interim financial information (15), and Inline XBRL files (101 series)[238](index=238&type=chunk)

Travel + Leisure Co. (TNL) came out with quarterly earnings of $1.57 per share, beating the Zacks Consensus Estimate of $1.49 per share. This compares to earnings of $1.54 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.37%. A quarter ago, it was expected that this company would post earnings of $1.39 per share when it actually produced earnings of $1.52, delivering a surprise of 9.35%.Over the last four quarters, the compan ...