Earnings on Watch: Interval Leisure Group, Inc. (IILG)

Company Profile:

Interval Leisure Group, Inc. provides non-traditional lodging covering a portfolio of leisure businesses from vacation exchange and rental to vacation ownership. The company operates through two segments, Exchange and Rental, and Vacation Ownership. The Exchange and Rental segment offers leisure and travel-related products and services to owners of vacation interests and others primarily through various membership programs, as well as related services to resort developer clients; and allows owners of vacation ownership interests to exchange their occupancy rights for alternative accommodations at another resort and/or occupancy period. The Vacation Ownership segment engages in the management of vacation ownership resorts; and the sale, marketing, and financing of vacation ownership interests, as well as in the provision of related services to owners and associations. As of December 31, 2015, it provided management services to approximately 200 vacation ownership properties and/or their associations. Interval Leisure Group, Inc. was founded in 1976 and is headquartered in Miami, Florida.

Recent News:

Interval Leisure Group will release its first quarter 2016 financial results after the market closes on Monday, May 9, 2016. It will also host a related conference call beginning at 4:30 p.m. ET that same day, accessible via telephone and the Internet.

On April 20, 2016, the company announced that at a special meeting of stockholders of ILG, the proposal necessary for the acquisition of Vistana Signature Experiences, Inc., the vacation ownership business of Starwood Hotels & Resorts Worldwide, Inc., through a merger of Vistana with a wholly-owned subsidiary of ILG immediately following the spin-off of Vistana from Starwood (the “Spin-Off”), was approved.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

IILG’s strengths can be seen in its better growth and strong profitability. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 57.33. The current P/E ratio indicates it is undervalued compared to the average P/E ratio of the industry and the sector. We rate Interval Leisure Group, Inc. (IILG) a Strong BUY.