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Starwood Hotels Profit Falls 15%, but Still Beats View; Forecast Boosted (HOT)

Hotel operator Starwood Hotels & Resorts Worldwide, Inc ( HOT

) on Thursday said its second quarter profit sagged 15% from last year, but adjusted results were enough to beat analyst expectations.

The White Plains, NY-based company reported second quarter net income of $114 million, or 61 cents per share, compared with $134 million, or 74 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 35 cents per share.

On average, Wall Street analysts expected a smaller profit of 26 cents per share.

Meanwhile, revenue rose 10% from last year to $1.29 billion, while revenue per available room (RevPAR) rose 13.1%.

Looking ahead, the company raised its full-year profit forecast to a range of 93 cents and $1.05 per share, which compares to analysts' expectations for 95 cents per share for the year.

Starwood Hotels shares rose $1.75, or +4%, in premarket trading Thursday.

The Bottom Line

Shares of HOT have a .46% dividend yield, based on last night's closing stock price of $43.80. The stock has technical support in the $40 price area. If the shares can firm up, we see overhead resistance around the $47-$50 price levels. We would remain on the sidelines for now.

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.

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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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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