Hotel operator Starwood Hotels & Resorts Worldwide, Inc (
) 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
Starwood shares rose $1.23, or +2.3%, in premarket trading
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 (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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