Q3 Earnings Highs And Lows: Hilton (NYSE:HLT) Vs The Rest Of The Travel and Vacation Providers Stocks

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the travel and vacation providers industry, including Hilton (NYSE:HLT) and its peers.

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 17 travel and vacation providers stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.4% since the latest earnings results.

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 $3.12 billion, up 8.8% year on year. This print exceeded analysts’ expectations by 3.7%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ revenue estimates but EBITDA guidance for next quarter meeting analysts’ expectations.

Interestingly, the stock is up 3.4% since reporting and currently trades at $274.90.

Is now the time to buy Hilton? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: 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 $240.2 million, up 16.6% year on year, outperforming analysts’ expectations by 4.6%. The business had a very strong quarter with a beat of analysts’ EPS and EBITDA estimates.

Lindblad Expeditions delivered the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.8% since reporting. It currently trades at $11.98.

Is now the time to buy Lindblad Expeditions? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: 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 $1.3 billion, flat year on year, falling short of analysts’ expectations by 5%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and adjusted operating income estimates.

Hilton Grand Vacations delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 11.4% since the results and currently trades at $39.14.

Read our full analysis of Hilton Grand Vacations’s results here.

American Airlines (NASDAQ:AAL)

One of the ‘Big Four’ airlines in the US, American Airlines (NASDAQ:AAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.

American Airlines reported revenues of $13.69 billion, flat year on year. This result met analysts’ expectations. Overall, it was a very strong quarter as it also recorded EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

The stock is up 6.7% since reporting and currently trades at $12.90.

Read our full, actionable report on American Airlines here, it’s free for active Edge members.

Travel + Leisure (NYSE:TNL)

Formerly known as Wyndham Destinations, Travel + Leisure (NYSE:TNL) is a global vacation company that provides travelers with vacation ownership, exchange, and travel services.

Travel + Leisure reported revenues of $1.04 billion, up 5.1% year on year. This print beat analysts’ expectations by 1%. More broadly, it was a satisfactory quarter as it also logged a decent beat of analysts’ adjusted operating income estimates but a miss of analysts’ tours conducted estimates.

The stock is up 6.7% since reporting and currently trades at $64.74.

Read our full, actionable report on Travel + Leisure here, it’s free for active Edge members.

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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