(TNL) – Travel + Leisure Stock Falls On Disappointing FY21 EPS Outlook

Travel + Leisure Stock Falls On Disappointing FY21 EPS Outlook

  • Travel + Leisure Co (NYSE: TNLreported second-quarter FY21 sales growth of 132% year-on-year, to $797 million, beating the analyst consensus of $721.87 million.
  • Vacation Ownership revenue increased 152% Y/Y to $599 million, while Travel and Membership revenue rose 92% to $204 million.
  • Operating expenses rose 74.5% Y/Y to $349 million, with total expenses for the quarter at $646 million.
  • The operating margin was 18.9%, with $151 million in operating income for the quarter.
  • Net cash provided by operating activities for the six months ended June 30, 2021, rose 123% to $290 million.
  • Adjusted EBITDA surged to $193 million, with a margin of 24.2%.
  • Adjusted EPS of $0.88 beat the analyst consensus of $0.74.
  • “Leisure travel is back in a significant way. All indicators of consumer behavior show that consumers are fulfilling their desire to travel, and we are benefiting from that recovery,” said president and CEO Michael D. Brown.
  • It plans to recommend a third-quarter dividend of $0.30 per share for approval by the Board of Directors.
  • Outlook: Travel + Leisure sees FY21 adjusted EPS of $3.20 – $3.30, versus the consensus of $3.34. The company expects Adjusted EBITDA of $720 million – $735 million.
  • For Q3, it expects Adjusted EBITDA of $200 million – $210 million.
  • Price action: TNL shares are trading lower by 5.65% at $53.25 on the last check Wednesday.