Starwood Hotels Q1 Profit Beats View as RevPAR Rises (HOT)

By Staff,

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Hotel operator Starwood Hotels & Resorts Worldwide, Inc ( HOT ) on Thursday posted much better-than-expected first quarter results, driven by higher sales.

The White Plains, NY-based compared reported first quarter net income of $30 million, or 16 cents per share, compared with $6 million, or 3 cents per share, in the year-ago period. Excluding one-time items, though, adjusted profit was 13 cents per share.

Still, Wall Street analysts, on average, had expected a much smaller profit of 2 cents per share.

The company said that overall revenue rose 5% from last year to $1.19 billion, while RevPAR, or revenue per available room, rose 6.3%. RevPAR is an important industry metric used to measure the true performance of lodging companies.

Looking ahead, the company predicted full-year adjusted earnings of 88 cents per share, with a 6% to 9% gain in RevPAR on a constant currency basis.

Starwood shares rose $1.23, or +2.3%, in premarket trading Thursday.

The Bottom Line
Shares of HOT have a dividend yield of .38%, based on last night's closing stock price of $53.27. The stock has technical support in the $47-$50 price area. If the shares can continue the recent ascent, we see overhead resistance around the $56-$60 price levels. We would remain on the sidelines for now.

Starwood Hotels & Resorts Worldwide, Inc ( HOT ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: HOT

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