Hilton Worldwide Holdings Inc. HLT is a leading global hospitality company and operates under a number of leading brands. This hotel company began trading in Dec 2013 and has a significant presence in major hospitality markets across the world.
The company has an industry-leading guest loyalty program — Hilton HHonors loyalty program — which serves millions of members worldwide.
Hilton’s geographic exposure in the U.S., solid transient business as well as its improving group business trends will continue to drive RevPAR. However, lingering political uncertainty in some of the regions where the company operates and negative currency translation remains a concern.
Investors should note that the consensus estimate for HLT has hardly witnessed any significant movement over the last 60 days. Meanwhile, HLT’s earnings have been mixed over the past few quarters. Though the company outpaced/met the Zacks Consensus Estimate in three of the last four quarters, the average earnings surprise stands at a negative 1.85%. Meanwhile, revenues have surpassed the consensus mark in three of the trailing four quarters.
HLT currently has a Zacks Rank #3 (Hold) but that could change following Hilton’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: HLT misses on earnings. Our consensus earnings estimate called for earnings per share of 26 cents, and the company reported earnings of 25 cents per share. Investors should note that these figures take out stock option expenses.
Revenues: HLT reported revenues of $3.05 billion, in-line with the consensus mark.
Key Stats to Note: System-wide comparable RevPAR increased 2.9% year over year for the second quarter on a currency neutral basis. RevPAR at comparable managed and franchised hotels increased 3.2% on a currency neutral basis.
Adjusted EBITDA of $806 million in the second quarter rose 4% and adjusted EBITDA margin increased 100 basis points.
Stock Price Impact: In-active in pre-market trading.
Check back later for our full write up on this HLT earnings report later!
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