The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Playa Hotels & Resorts (NASDAQ: PLYA) and the rest of the travel and vacation providers stocks fared in Q1.
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 4.5% above.
Luckily, travel and vacation providers stocks have performed well with share prices up 10.4% on average since the latest earnings results.
Playa Hotels & Resorts (NASDAQ: PLYA)
Sporting a roster of beachfront properties, Playa Hotels & Resorts (NASDAQ: PLYA) is an owner, operator, and developer of all-inclusive resorts in prime vacation destinations.
Playa Hotels & Resorts reported revenues of $267.3 million, down 11.1% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ adjusted operating income estimates.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $13.48.
Is now the time to buy Playa Hotels & Resorts? 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 scored 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 19.6% since reporting. It currently trades at $10.89.
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 17% since the results and currently trades at $39.35.
Read our full analysis of Hilton Grand Vacations’s results here.
Hilton (NYSE: HLT)
Founded in 1919, Hilton Worldwide (NYSE: HLT) is a global hospitality company with a portfolio of hotel brands.
Hilton reported revenues of $2.70 billion, up 4.7% year on year. This number came in 0.9% below analysts' expectations. Zooming out, it was a mixed quarter as it also produced a decent beat of analysts’ EPS estimates but EBITDA guidance for next quarter missing analysts’ expectations.
The stock is up 11.7% since reporting and currently trades at $247.56.
Read our full, actionable report on Hilton here, it’s free.
United Airlines (NASDAQ: UAL)
Founded in 1926, United Airlines Holdings (NASDAQ: UAL) operates a global airline network, providing passenger and cargo air transportation services across domestic and international routes.
United Airlines reported revenues of $13.21 billion, up 5.4% year on year. This result topped analysts’ expectations by 0.6%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ EPS estimates and a decent beat of analysts’ adjusted operating income estimates.
The stock is up 10.9% since reporting and currently trades at $74.40.
Read our full, actionable report on United Airlines here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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