Travel + Leisure Stock Falls On Disappointing FY21 EPS Outlook

Travel + Leisure Co TNL reported second-quarter FY21 sales growth of 132% year-on-year, to $797 million, beating the analyst consensus of $721.87 million.
Vacation Ownership revenue increased 152% Y/Y to $599 million, while Travel and Membership revenue rose 92% to $204 million.
Operating expenses rose 74.5% Y/Y to $349 million, with total expenses for the quarter at $646 million.
The operating margin was 18.9%, with $151 million in operating income for the quarter.
Net cash provided by operating activities for the six months ended June 30, 2021, rose 123% to $290 million.
Adjusted EBITDA surged to $193 million, with a margin of 24.2%.
Adjusted EPS of $0.88 beat the analyst consensus of $0.74.
"Leisure travel is back in a significant way. All indicators of consumer behavior show that consumers are fulfilling their desire to travel, and we are benefiting from that recovery," said president and CEO Michael D. Brown.
It plans to recommend a third-quarter dividend of $0.30 per share for approval by the Board of Directors.
Outlook: Travel + Leisure sees FY21 adjusted EPS of $3.20 - $3.30, versus the consensus of $3.34. The company expects Adjusted EBITDA of $720 million - $735 million.
For Q3, it expects Adjusted EBITDA of $200 million - $210 million.
Price action: TNL shares are trading lower by 5.65% at $53.25 on the last check Wednesday.

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