Valley luxury travel, events company lowers profit expectations in wake of coronavirus

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Posted at 8:44 AM, Mar 17, 2020
and last updated 2020-03-17 11:44:21-04

Shares of Phoenix-based Viad Corp, a luxury travel and events company, were hammered Monday after the company sharply lowered its profit and revenue estimates in the wake of increased health concerns and restricted recommendations for social distancing due to the spread of the coronavirus.

Viad is split into two revenue segments, GES, its global live events company and Pursuit, its luxury travel operation that includes attractions, lodges and hotels in locations ranging from Alaska, the Canadian Rockies, Vancouver and Reykjavik, Iceland.

The company said it expects Q1 revenue for GES to be in a range of $275 million to $290 million, as compared to prior guidance of $335 million to $350 million.

The profitability of that segment is expected to be hit even harder, with expected Q1 adjusted segment operating income expected in a range between $5 million to $8 million, versus previous guidance of $23 million to $26 million.

Read more from the Phoenix Business Journal.