Travel + Leisure (TNL) to Report Q2 Earnings: What's in Store?

Core Viewpoint - Travel + Leisure Co. (TNL) is expected to report second-quarter earnings on July 24, 2024, with a consensus estimate indicating a 4.5% growth in adjusted earnings per share compared to the previous year [2][11]. Financial Performance - TNL's earnings have surpassed expectations in three of the last four quarters, with an average surprise of 15.9% [1]. - The consensus estimate for net revenues in the upcoming quarter is $984.4 million, reflecting a 3.7% increase from the same quarter last year [12]. - The company anticipates gross vacation ownership interest (VOI) sales between $580 million and $610 million, up from $557 million reported in the prior year [13]. Segment Analysis - The Vacation Ownership segment is expected to contribute positively to revenue growth due to increased tours and VOI sales, although this may be partially offset by a decline in volume per guest (VPG) [3]. - The Travel and Membership segment is anticipated to face challenges due to lower transaction volumes, but increased revenue per transaction from price hikes may provide some offset [4]. Cost Management - TNL's bottom line is likely to benefit from reduced general and administrative expenses and lower operating costs in the Travel and Membership segment, alongside leverage from increased revenues [14]. Earnings Expectations - TNL has an Earnings ESP of 0.00%, indicating uncertainty regarding an earnings beat this quarter [6]. - The company currently holds a Zacks Rank of 2, suggesting a favorable outlook but lacking the combination of positive Earnings ESP and a higher rank necessary for a strong earnings beat [16][24].