Travel + Leisure Gears Up for Q4 Earnings: What's in the Offing?

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$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].