Hotel operator Starwood Hotels & Resorts Worldwide, Inc ( HOT ) on Thursday posted a 15% gain in second quarter earnings and lifted its full-year outlook.
The White Plains, NY-based company reported second quarter net income of $131 million, or 68 cents per share, compared with $114 million, or 61 cents per share, in the year-ago period. Excluding one-time items, adjusted profit from continuing operations was 50 cents per share.
Revenue rose 10.6% from last year to $1.43 billion.
On average, Wall Street analysts expected a smaller profit of 46 cents per share, on lower revenue of $1.41 billion.
Looking ahead, the company forecast third quarter earnings to range from 36 to 40 cents per share, while analysts expect 37 cents for the quarter. For the full year, HOT boosted its earnings outlook to $1.67 to $1.77 per share, up from a prior forecast of $1.60 to $1.70. Analysts are looking for $1.72 for the year.
Starwood Hotels shares rose 74 cents, or +1.3%, in premarket trading Thursday.
The Bottom Line
Shares of Starwood Hotels ( HOT ) have a .54% dividend yield, based on last night's closing stock price of $55.71. The stock has technical support in the $50-$52 price area. If the shares can firm up, we see overhead resistance around the $60-$61 price levels.
Starwood Hotels & Resorts Worldwide, Inc ( HOT ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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