Hyatt Hotels Corporation H is a leading global hospitality company and operates under a number of leading brands. The company has a significant presence in major hospitality markets across the world. The company has an industry-leading guest loyalty program — Hyatt Gold Passport program — which serves over 18 million members worldwide.
Given its property locations and strong brand recognition, the company seems to be well-positioned. However, lingering political uncertainty in some of the regions where the company operates is a concern. Further, with its substantial international presence, the negative impact of a strong dollar also poses a headwind.
Investors should also note the recent earnings estimate revisions for H, as the consensus estimate has been moving downwards. Meanwhile, H has a sluggish history in earnings season. Hyatt Hotels has missed estimates in three of the last four quarters, making for an average negative surprise of 24.94%. Meanwhile, the company has also missed revenue estimates in two of the trailing four quarters.
Currently, H has a Zacks Rank #4 (Sell) but that could change following Hyatt’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: H beats on earnings. Our consensus earnings estimate called for EPS of 22 cents per share, and the company reported EPS of 30 cents instead. Investors should note that these figures take out stock option expenses.
Revenues: H reported revenues of $1.053 billion. This marginally beat the consensus revenue estimate of $1.045 billion.
Key Stats to Note: Comparable owned and leased hotels RevPAR increased 2.5% while comparable systemwide RevPAR increased 1.6% in the reported quarter. Adjusted EBITDA was $172 million, down 4% year over year.
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