News

What Happened?

Shares of experiential tourism company Pursuit Attractions and Hospitality (NYSE:PRSU) jumped 6.5% in the pre-market session after the company reported strong fourth-quarter 2024 results, which blew past analysts' sales, earnings, and EBITDA expectations. In addition, its full-year EBITDA guidance outperformed Wall Street's estimates by a wide margin.

The real story for the quarter was the benefit anticipated from the sale of its GES business. This move improved its debt structure, freeing up substantial cash for future investments.

On the growth side, revenue grew 8.5% year-on-year, driven by higher ticket sales at key attractions, though some locations saw weaker performance due to the lingering effects of a wildfire that disrupted operations in Jasper National Park. Excluding those affected properties, revenue increased at a much stronger 15.3% clip. Zooming out, we think this was a solid quarter.

The shares closed the day at $39.03, up 5.1% from previous close.

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What The Market Is Telling Us

Pursuit’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Pursuit is down 6.2% since the beginning of the year, and at $39.03 per share, it is trading 14.2% below its 52-week high of $45.51 from November 2024. Investors who bought $1,000 worth of Pursuit’s shares 5 years ago would now be looking at an investment worth $1,268.

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