Why Pursuit Attractions and Hospitality (PRSU) Stock Is Down Today

What Happened?

Shares of hospitality company Pursuit Attractions and Hospitality (NYSE:PRSU) fell 5.8% in the morning session after the company reported third-quarter results, which failed to impress the market.

For the quarter, revenue rose 32.2% year-on-year to $241 million. The company also posted adjusted earnings per share of $2.65, which was $0.20 ahead of the analyst consensus. Additionally, Pursuit's full-year adjusted EBITDA guidance of $119 million at the midpoint came in above analyst estimates. The decline suggests expectations were high heading into prints.

Correction note: A previous version of this article incorrectly states that the company's revenue declined 47.1% year on year. We have updated the article to reflect the accurate figure (a 32.2% like-for-like year-on-year increase), pro forma for the sale of the GES business reported as a discontinued operation.

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What Is The Market Telling Us

Pursuit Attractions and Hospitality’s shares are quite volatile and have had 18 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.

The previous big move we wrote about was 30 days ago when the stock dropped 5.3% on the news that a confluence of negative economic data pointed to a weak economy. The latest Survey of Consumer Expectations from the New York Fed revealed that households' short-term inflation expectations rose, while their outlook on the labor market deteriorated. Consumers expressed greater concern about potential job losses and expected lower earnings growth, factors that directly impact discretionary spending. Adding to the unease, Chief Economist at Moody’s Analytics, Mark Zandi, warned that 22 states demonstrated clear signs of a recession, placing the broader U.S. economy in a precarious position. The U.S. government shutdown further dampened sentiment, threatening to weigh on incomes and purchasing power.

Pursuit Attractions and Hospitality is down 20.8% since the beginning of the year, and at $32.96 per share, it is trading 27.6% below its 52-week high of $45.51 from November 2024. Investors who bought $1,000 worth of Pursuit Attractions and Hospitality’s shares 5 years ago would now be looking at an investment worth $1,753.

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