Investors were more than willing to take a journey with Travel + Leisure (TNL +15.46%) midweek. On Wednesday, shares of the travel services company flew more than 15% skyward in value, thanks to a very well-received earnings report. That rise looked especially impressive as the market was generally gloomy; the S&P 500 (SNPINDEX: ^GSPC) dipped by more than 0.5%.

Climbing fundamentals

In its third quarter, Travel + Leisure’s net revenue came in at almost $1.05 billion, which was 5% higher than the result from the same period one year ago. Non-GAAP (generally accepted accounting principles) adjusted net income also saw improvement, rising by 8% to $119 million, or $1.80 per share.

Image source: Getty Images.

Both line items came in above the average analyst estimates. Pundits tracking Travel + Leisure stock were modeling $1.03 billion for revenue, and a per-share, adjusted net income figure of $1.74.

Of its two main revenue categories, Travel + Leisure’s vacation ownership (VOI) showed the better growth. Its take of $876 million was 6% higher year over year, while that for travel and membership inched up by 1% to $169 million. The company’s customers are eagerly spending more, as volume per guest (VPG) leaped 10% to $3,304.

Today’s Change

(15.46%) $9.38

Current Price

$70.05

Key Data Points

Market Cap

$4B

Day’s Range

$61.53 – $70.39

52wk Range

$37.77 – $70.39

Volume

90K

Avg Vol

679K

Gross Margin

35.73%

Dividend Yield

0.04%

Looking forward to the future

It was a beat-and-raise quarter for Travel + Leisure, as the company made revisions to selected guidance items.

It now expects the VOI business to post gross sales of $2.45 billion to $2.5 billion (up from the previous $2.4 billion to $2.5 billion). Ditto for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), now anticipated to be $965 million to $985 million (formerly $955 million to $985 million). Finally, VPG should land at $3,250 to $3,275, against the preceding $3,200 to $3,250.