Travel + Leisure Q1 EPS Beats with $1.45, Shares Fall 13% on Loan Delinquencies
Travel + Leisure posted Q1 EPS of $1.45 on $961 million in revenue, exceeding estimates and maintaining full-year guidance. Shares plunged 13% on early-stage loan delinquencies despite strong underwriting, high FICO scores, a 3.5% dividend yield and 5.5% share count reduction.
1. Financial Highlights
In Q1, Travel + Leisure posted EPS of $1.45 on $961 million in revenue, beating estimates and up from $1.11 a year earlier. The company maintained full-year guidance, with a current ratio of 2.94 and trailing P/E of 17.62, highlighting liquidity and valuation strength.
2. Early-Stage Delinquencies
Shares dropped 13% after elevated delinquencies emerged in recent loan vintages. Management emphasizes strong underwriting standards and high borrower FICO scores should contain potential losses.
3. Capital Return Initiatives
Capital return measures included a 3.5% dividend yield and share buybacks that reduced share count by 5.5% year-over-year, aiming to bolster shareholder value.