Markets
HLT

Hotel Stocks to Watch for Earnings on Jul 27: HLT, MAR, WYN

A generic image of a pen a chart
Credit: Shutterstock photo

With all eyes on the Q2 earnings season, let's take a look at how the hotel stocks are expected to fare.

We note that the first quarter was more or less a good one for hotel companies. Rise in business and leisure travel, favorable supply and demand balances and solid lodging fundamentals drove the results, despite the turmoil in international markets.

Though increasing travel demand and higher transaction volumes are expected to boost the Q2 results, decline in occupancy levels, negative currency translation and pockets of geopolitical instability and economic slowdown might dent profits.

Three hotel companies are set to report their second-quarter numbers on Jul 27. Will these companies manage to put up a decent performance? Let's take a look at what might be in store for them this quarter:

Hilton Worldwide Holdings Inc.HLT posted a positive earnings surprise of 6.25% last quarter. However, the trailing four-quarter average earnings surprise stands at a negative 1.85%.

HILTON WW HLDG Price and EPS Surprise

HILTON WW HLDG Price and EPS Surprise | HILTON WW HLDG Quote

For the second quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter's earnings is pegged at 26 cents.

The company saw strong U.S. revenue per available room (RevPAR) in first-quarter 2016 and we expect the trend to continue in the to-be-reported quarter. However, lingering political uncertainty and economic downturns in international markets might limit top-line growth (read more: Hilton Worldwide Q2 Earnings: Surprise in Store? ).

Marriott International, Inc.MAR registered a 3.57% positive earnings surprise in the previous quarter. In fact, the company's earnings surpassed the Zacks Consensus Estimate in all of the last four quarters, with an average beat of 2.88%

MARRIOTT INTL-A Price and EPS Surprise

MARRIOTT INTL-A Price and EPS Surprise | MARRIOTT INTL-A Quote

The company has an Earnings ESP of -1.02% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the quarter's earnings is pegged at 98 cents.

For the second quarter, Marriott expects earnings per share in the range of 96 cents to $1.00, up from the year-ago level of 82 cents. However, lingering global uncertainties, competition in domestic market coupled with negative currency translation is likely to hurt top-line growth (read more: Will Marriott Let Down Investors this Earnings Season? ).

Wyndham Worldwide CorporationWYN recorded a positive earnings surprise of 0.90% in the preceding quarter. In fact, the company posted positive earnings surprises in three of the past four quarters, with an average beat of 1.93%.

WYNDHAM WORLDWD Price and EPS Surprise

WYNDHAM WORLDWD Price and EPS Surprise | WYNDHAM WORLDWD Quote

The company has an Earnings ESP of 0.00% and a Zacks Rank #4. The Zacks Consensus Estimate for the quarter is pegged at $1.36 per share.

Despite various sales and marketing initiatives, negative currency translation and uncertainty in international markets are likely to mar the company's revenues in Q2 (read more: Wyndham Q2 Earnings: Disappointment in the Cards? ).

Don't miss out on our full earnings release articles for these stocks, as the actual results might hold some surprises!

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

WYNDHAM WORLDWD (WYN): Free Stock Analysis Report

MARRIOTT INTL-A (MAR): Free Stock Analysis Report

HILTON WW HLDG (HLT): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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


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

In This Story

HLT MAR

Other Topics

Earnings Stocks