ORLANDO, Fla. - Travel + Leisure Co. (NYSE:TNL), the world's premier membership and leisure travel company, disclosed its financial outcomes for the fourth quarter ended December 31, 2023. The company reported a mixed performance with fourth-quarter adjusted earnings per share (EPS) of $1.98, surpassing the analyst consensus of $1.37. However, the revenue slightly missed expectations, coming in at $935 million against the anticipated $942.42 million.
The company's net income for the quarter stood at $129 million, translating to a diluted EPS of $1.77 on net revenue of $935 million. This performance marked a significant increase from the same quarter last year, with a 5% rise in Vacation Ownership revenue to $776 million and a 12% boost in Adjusted EBITDA within the segment. Gross vacation ownership interest (VOI) sales also showed strength with $540 million compared to $521 million in the prior year. Nevertheless, Travel and Membership revenue experienced a 3% decline to $158 million.
Travel + Leisure Co. also announced its outlook for the full year 2024, expecting Adjusted EBITDA to range between $910 million and $930 million. For the first quarter of 2024, the company anticipates Adjusted EBITDA to be between $185 million and $190 million.
Despite the revenue shortfall, shares of Travel + Leisure Co. edged up by 0.5% as the market digested the mixed results. The company's President and CEO, Michael D. Brown, highlighted the year-over-year growth in revenue, vacation ownership sales, and adjusted EBITDA. "Our core vacation ownership business performed at or better than our expectations on every key measure, effectively leveraging continued leisure travel demand," said Brown.
Brown also emphasized the company's multi-brand strategy, noting recent acquisitions and momentum heading into 2024. "We expect that momentum, combined with a strong leisure travel market, to drive earnings and adjusted free cash flow," he concluded.
Investors appeared to respond cautiously to the mixed results, with the modest stock price increase reflecting a balanced reaction to the earnings beat and slight revenue miss.
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