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 over 46 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 and strengthening of dollar remains a concern.
Investors should also note the recent earnings estimate revisions for HLT, as the consensus estimate has been mostly moving downwards. Meanwhile, HLT has a mixed history in earnings season. Hilton has missed earnings results in two of the last four quarters, making for an average negative surprise of 3.33%. Meanwhile, the company has posted positive revenue surprises in all the trailing four quarters.
Currently, HLT 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 posted in-line earnings. The company reported EPS of 23 cents and the consensus earnings estimate also called for EPS of 23 cents per share. Investors should note that these figures take out stock option expenses.
Revenues: HLT reported revenues of $2.90 billion. This beat our consensus estimate of $2.87 billion.
Key Stats to Note: System-wide comparable RevPAR increased 5.8% year over year for the third quarter on a currency neutral basis. U.S. comparable RevPAR increased 5.1% while International RevPAR was up 8.9%. Adjusted EBITDA of $758.0 million in the third quarter and adjusted EBITDA margin increased 290 basis points.
The company revised its earnings, RevPAR and adjusted EBITDA guidance for 2015. Adjusted earnings per share is now expected to be in the range of 81 to 83 cents, compared to previous expectation of 80 to 84 cents. Meanwhile, system-wide RevPAR is expected to increase between 5% to 6.5% on a comparable and currency neutral basis in 2015 compared to previous expectation of 5% to 7%. Adjusted EBITDA is expected in the range of $2.84 billion o $2.87 billion compared to prior expectation of $2.82 billion to $2.87 billion.
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