Travel + Leisure beats Q4 revenue and EPS estimates; sets share buyback

Overview

• Leisure travel company's Q4 revenue beat analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company announced new $750 mln share repurchase authorization

Outlook

• Travel + Leisure expects full-year 2026 adjusted EBITDA between $1,030 mln and $1,055 mln

• Company forecasts first-quarter 2026 adjusted EBITDA between $210 mln and $220 mln

• Travel + Leisure plans to recommend a dividend increase to $0.60 per share in Q1 2026

Result Drivers

• VACATION OWNERSHIP GROWTH - Vacation Ownership revenue increased 8% due to higher Gross VOI sales and cost management

• TRAVEL AND MEMBERSHIP DECLINE - Travel and Membership revenue fell 6% due to decreased transaction revenue and lower revenue per transaction

• RESORT OPTIMIZATION IMPACT - $210 mln in inventory write-downs and impairments related to Resort Optimization Initiative affected net income

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"

• Wall Street's median 12-month price target for Travel + Leisure Co is $79.00, about 8.4% above its February 17 closing price of $72.86

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBw5w8hNya

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.