Travel + Leisure Co. (TNL) shares plummeted 5.02% in pre-market trading on Wednesday, a sharp reversal from earlier gains following the company's first-quarter earnings release.

The vacation ownership company reported strong Q1 results with adjusted earnings of $1.45 per diluted share, surpassing the FactSet consensus estimate of $1.31 and up from $1.11 a year earlier. Revenue also beat expectations, coming in at $961 million compared to analyst forecasts of $954.9 million.

Despite these positive results, investors appeared to take profits as the stock turned negative in pre-market activity. The decline suggests a "sell the news" reaction after the stock had gained 10.1% during the quarter and 8.0% year-to-date prior to the earnings announcement.