Travel + Leisure (NYSE:TNL) Issues Earnings Results, Beats Expectations By $0.16 EPS

Travel + Leisure (NYSE:TNL) announced its quarterly earnings data on Tuesday. The company reported $2.21 earnings per share for the quarter, beating analysts’ consensus estimates of $2.05 by $0.16, FiscalAI reports. Travel + Leisure had a negative return on equity of 46.91% and a net margin of 5.81%. The company had revenue of $1.10 billion for the quarter, compared to analyst estimates of $1.08 billion. During the same quarter in the previous year, the company earned $1.80 EPS. The firm’s revenue for the quarter was up 5.5% compared to the same quarter last year.

Here are the key takeaways from Travel + Leisure’s conference call:

• Positive Sentiment: Travel + Leisure reported strong third-quarter results, with revenue up 5%, EBITDA up 6%, net income up 16%, and EPS up 23% to $2.21. Management raised the midpoint of full-year gross VOI sales and EBITDA guidance and increased its EPS outlook.
• Positive Sentiment: The Yes& Vacations and Spinnaker Resorts acquisitions contributed approximately $21 million of gross VOI sales and $7 million of EBITDA in the quarter. Management expects cost synergies within 12 months and sees substantial upside from introducing Club Wyndham points and increasing upgrade activity across the acquired owner base.
• Positive Sentiment: Consumer credit trends continued to improve, with lower delinquencies and defaults, strong new-loan credit quality, and a reduced full-year loan-loss provision outlook of approximately 20% versus 21% previously. Management expects further improvement in 2027.
• Positive Sentiment: The multi-brand strategy is expanding the company’s customer reach, with Margaritaville on pace for more than $175 million in annual gross VOI sales and Accor approaching $50 million in its third year. Sports Illustrated, Eddie Bauer, and other brands are viewed as longer-term sources of new-owner growth.
• Negative Sentiment: Travel and Membership remains under pressure from declining exchange transaction activity as members increasingly stay within their clubs, despite a stable affiliate-member base. The company implemented a cost program affecting roughly 300 employees and expects approximately $16 million in annualized savings, with most benefits realized in 2027.

Travel + Leisure Stock Performance

TNL stock traded down $1.33 during midday trading on Tuesday, hitting $64.29. 126,266 shares of the stock were exchanged, compared to its average volume of 744,499. The stock’s 50-day moving average price is $66.05 and its 200-day moving average price is $70.58. The stock has a market cap of $3.93 billion, a price-to-earnings ratio of 17.56, a PEG ratio of 0.66 and a beta of 1.19. Travel + Leisure has a fifty-two week low of $60.34 and a fifty-two week high of $81.00.

Travel + Leisure Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th were issued a dividend of $0.60 per share. The ex-dividend date of this dividend was Wednesday, September 16th. This represents a $2.40 annualized dividend and a yield of 3.7%. Travel + Leisure’s payout ratio is currently 65.57%.

Analyst Ratings Changes

TNL has been the topic of several recent analyst reports. Wells Fargo & Company dropped their target price on Travel + Leisure from $92.00 to $90.00 and set an “overweight” rating on the stock in a research report on Monday, October 19th. JPMorgan Chase & Co. initiated coverage on Travel + Leisure in a report on Thursday, October 8th. They set a “neutral” rating and a $70.00 price objective on the stock. Morgan Stanley reiterated an “overweight” rating and issued a $86.00 price objective on shares of Travel + Leisure in a research report on Thursday. Zacks Research cut Travel + Leisure from a “hold” rating to a “strong sell” rating in a research report on Thursday, October 22nd. Finally, Susquehanna reduced their target price on Travel + Leisure from $95.00 to $75.00 and set a “positive” rating for the company in a report on Thursday, October 15th. Eleven analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $85.25.

Insider Buying and Selling

In other Travel + Leisure news, CAO Thomas Michael Duncan sold 20,000 shares of the company’s stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $74.16, for a total value of $1,483,200.00. Following the sale, the chief accounting officer owned 5,307 shares of the company’s stock, valued at approximately $393,567.12. This represents a 79.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 4.01% of the company’s stock.

About Travel + Leisure

Travel + Leisure Co (NYSE:TNL) is a hospitality and leisure travel company that operates vacation ownership, exchange, and membership businesses. The company provides travelers with access to resort accommodations, vacation experiences, travel services, and related lifestyle offerings through a portfolio of consumer brands.

Its vacation ownership business includes brands such as Club Wyndham, WorldMark by Wyndham, and Margaritaville Vacation Club, offering members interests in vacation properties and access to resort destinations.