2023-08-03 14:01:54 ET
Travel stocks fell on Thursday as results disappointed investors.
Expedia Group ( EXPE ) and TripAdvisor ( TRIP ) led losses, while Travel + Leisure ( TNL ), Booking Holdings ( BKNG ), Airbnb ( ABNB ) and Carnival Corporation & Plc ( CCL ) also traded down.
EXPE slumped after the online travel company's tally of gross bookings in Q2 missed expectations, while TripAdvisor ( TRIP ) fell after reporting Q2 non-GAAP EPS of $0.34 that missed the average analyst estimate by $0.02.
Marriott International ( MAR ), which had topped estimates earlier this week, also fell, alongside Hyatt Hotels Corporation ( H ) and Wyndham Hotels & Resorts, Inc. ( WH ).
TripAdvisor ( TRIP ) said it expects a “low single-digit year-over-year revenue decline” in the third quarter for its Core division given trends seen in the second quarter.
For the second quarter, the Core segment delivered revenue of $279M, which represented 2% growth. While that was in line with expectations, branded hotels declined more quickly than anticipated, decreasing 7% year-over-year, management said in an earnings call.
Disappointment in the skies
Airlines including Alaska Air Group ( ALK ) and Spirit Airlines ( SAVE ) also traded lower. Southwest Airlines Co. ( NYSE: LUV ) dropped more than 2% after Jefferies downgraded the stock to an Underperform rating from Hold.
Analyst Sheila Kahyaoglu said low-cost domestic airlines such as LUV face a weakening U.S. consumer.
"Alongside a worse cost outlook, LUV's decelerating RASMs and fleet refresh cycle that forces capacity into oversupplied markets create limited visibility to margin expansion in 2024 despite its optimization plan."
More on travel stocks:
- Expedia falls to two-month low after gross bookings tally disappoints
- TripAdvisor Non-GAAP EPS of $0.34 misses by $0.02, revenue of $494M beats by $20.55M
- Southwest Airlines falls after Jefferies is the latest firm to pull its bull rating
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Hoteliers to airlines tumble as results fail to inspire