Travel + Leisure Co. (NYSE:TNL) fell just short of Wall Street’s earnings projections for the second quarter, even as the company reported better-than-expected revenue and continued momentum in its core vacation ownership division.
The travel services provider posted adjusted earnings per share of $1.65, a cent below analysts’ forecast of $1.66.
Revenue, however, reached $1.02 billion, slightly surpassing the $1.01 billion estimate and marking year-over-year growth for the company.
Following the report, shares dipped 0.62% in Wednesday trading.
The Vacation Ownership business, which remains Travel + Leisure’s primary revenue driver, brought in $853 million—up 6% from the same period last year. That growth was fueled by a 7% rise in volume per guest (VPG) to $3,251, along with a 3% increase in the number of tours conducted.
On the flip side, revenue in the Travel and Membership segment dropped 6% to $166 million, impacted by fewer exchange transactions.
“Thanks to the exceptional work of the entire Travel + Leisure Co. team, we delivered another strong quarter. We saw healthy year-over-year growth in VOI sales, with gains in both tour flow and volume per guest,” said Michael D. Brown, President and CEO.
Looking ahead to the third quarter, the company expects adjusted EBITDA in the range of $250 million to $260 million.
It also reiterated its full-year adjusted EBITDA guidance of $955 million to $985 million, while revising its volume per guest target higher to $3,200–$3,250, up from the previous estimate of $3,050–$3,150.
In Q2, Travel + Leisure returned $107 million to shareholders, including $37 million in dividends and $70 million through share buybacks. As of the end of June, the company still had $303 million available under its share repurchase program.
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