TNL Earnings Prediction
The chart below shows how TNL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TNL sees a +0.70% change in stock price 10 days leading up to the earnings, and a +1.90% change 10 days following the report. On the earnings day itself, the stock moves by -1.66%. This data can give you a slight idea of what to expect for the next quarter's release.
TNL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
971.00M
3.74%
-2.22%
Gross Margin
48.09%
2.06%
2.04%
Operating Margin
21.52%
-2.23%
4.26%
Net Margin
12.15%
-11.83%
24.36%
EPS
1.70
-3.95%
23.19%
No Data Available
TNL Earnings Analysis
Travel + Leisure Co Corporation (TNL.N) Earnings Conference Call
Positive
Earnings Beat Expectations: Travel + Leisure Co. reported an adjusted EPS of $1.72, exceeding expectations of $1.68, indicating strong financial performance.
Adjusted EBITDA Achievement: The company achieved $929 million in adjusted EBITDA for 2024, showcasing robust operational efficiency and profitability.
Vacation Ownership Tours Growth: Vacation ownership business saw an 8% growth in tours, contributing significantly to the overall success of the company in 2024.
Vacation Ownership Sales Growth: Enterprise-wide gross vacation ownership sales grew by 7%, reflecting strong demand and effective sales strategies.
Customer Acquisition Growth: New order transactions increased by 35%, a 185 basis point rise from 2023, indicating a positive trend in customer acquisition.
Strategic Partnerships for Growth: Partnerships with Allegiant Airlines and Live Nation were signed, expected to enhance cross-marketing and lead generation opportunities.
App Launch Success: The launch of the new Club Wyndham app resulted in approximately 40,000 downloads and over 80% positive reviews, enhancing user engagement and satisfaction.
Shareholder Capital Return: The company repurchased 7% of outstanding shares and paid a $2.00 per share dividend, demonstrating a commitment to returning capital to shareholders.
Strong Adjusted EBITDA Margins: Adjusted EBITDA margins remained strong at 24% for the full year, reflecting effective cost management and operational performance.
Future EBITDA Projections: The company expects adjusted EBITDA to range between $955 million to $985 million for 2025, indicating confidence in future growth.
Negative
Travel Segment Stagnation: The Travel and Membership segment reported flat adjusted EBITDA of $52 million compared to the previous year, indicating stagnation in this area.
Exchange Transaction Decline: Exchange transactions decreased by 5%, reflecting a continued mix shift of clubs with members less likely to exchange, which could signal a decline in customer engagement.
Rising Delinquency Concerns: Delinquencies were higher at the end of Q1 and Q2 compared to historical levels, raising concerns about customer payment behaviors and financial health.
Profitability Challenges Ahead: The company faced significant headwinds from higher interest rates and variable compensation costs totaling $37 million, which could impact future profitability.
Effective Tax Rate Impact: The effective income tax rate for 2025 is expected to be between 28% to 30%, which is higher than anticipated due to the impact of Pillar Two, potentially affecting net earnings.
Limited EBITDA Growth Outlook: The guidance for adjusted EBITDA growth in the Travel and Membership segment is only flat to up 2% for 2025, indicating limited growth potential in this area.
TNL FAQs
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TNL Earning Call Sentiment
Travel + Leisure Co. (NYSE:TNL) Q4 2024 Earnings Call Transcript
TNL.N
-3.47%Positive
The earnings call shows strong financial performance, with a 5% increase in adjusted EBITDA and EPS. The shareholder return plan, including a 12% dividend increase and 7% share repurchase, is positive. Despite some concerns in the Q&A about interest rates and forward bookings, the overall sentiment is optimistic. The market cap suggests a moderate reaction, leading to a positive stock price movement prediction.
