Overview

* Travel + Leisure ( TNL ) Q2 revenue of $1.02 bln missed analyst expectations

* Adjusted EPS of $1.65 beat estimates, per LSEG data

* Vacation Ownership revenue increased 6% yr/yr, driven by higher VOI sales

Outlook

* The company, which focuses on timeshare resorts, expects Q3 adjusted EBITDA of $250 mln to $260 mln

* Travel + Leisure ( TNL ) forecasts Q3 gross VOI sales of $650 mln to $680 mln

* Company anticipates full-year adjusted EBITDA of $955 mln to $985 mln

* Travel + Leisure ( TNL ) projects full-year gross VOI sales of $2.4 bln to $2.5 bln

Result Drivers

* VACATION OWNERSHIP GROWTH - Vacation Ownership revenue increased 6% to $853 mln, driven by a 7% rise in volume per guest and a 3% increase in tours

* VOI SALES GROWTH - Net vacation ownership interest sales rose 7% year-over-year, despite a higher provision rate

* TRAVEL AND MEMBERSHIP DECLINE - Revenue in the Travel and Membership segment decreased 6% due to a 7% drop in transaction revenue

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $1.02 $1.01

Revenue bln bln (10

Analysts

)

Q2 Beat $1.65 $1.64

Adjusted (10

EPS Analysts

)

Q2 Net $108 mln

Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "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 ( TNL ) is $64.00, about 9.6% above its July 22 closing price of $57.85

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)