Hospitality company Playa Hotels & Resorts (NASDAQ:PLYA) will be announcing earnings results tomorrow after market close. Here’s what you need to know.

Playa Hotels & Resorts beat analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $183.5 million, down 13.9% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Is Playa Hotels & Resorts a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Playa Hotels & Resorts’s revenue to decline 10.9% year on year to $216.2 million, a reversal from the 15% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.04 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Playa Hotels & Resorts has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.3% on average.

Looking at Playa Hotels & Resorts’s peers in the travel and vacation providers segment, some have already reported their Q4 results, giving us a hint as to what we can expect. United Airlines delivered year-on-year revenue growth of 7.8%, beating analysts’ expectations by 2.1%, and Royal Caribbean reported revenues up 12.9%, in line with consensus estimates. United Airlines traded down 2.3% following the results while Royal Caribbean was up 13.6%.

Read our full analysis of United Airlines’s results here and Royal Caribbean’s results here.

Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the travel and vacation providers stocks have shown solid performance, the group has generally underperformed, with share prices down 2.4% on average over the last month. Playa Hotels & Resorts is up 8.9% during the same time and is heading into earnings with an average analyst price target of $13.36 (compared to the current share price of $13.36).

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