Hilton Lifts Full-Year Outlook on World Cup-Boosted Q3, But Q4 Guidance Lands Below Consensus
HLT sits 32% above its 52-week low of $253.54.
Summary
Hilton raised full-year guidance after a World Cup-boosted third quarter: comparable RevPAR growth is now seen at 4%-4.5% (from 3%-3.5%) and adjusted EPS at $9.07-$9.13 (from $8.89-$9.01). Q3 adjusted EPS of $2.45 beat the $2.37 consensus and net income rose to $536M from $420M a year earlier, though revenue of $3.33B came in just shy of the $3.37B estimate. Comparable RevPAR grew 5.8% on higher occupancy and rates, management and franchise fees rose 9.5%, and Hilton opened a record 182 hotels (27,000 rooms) in the quarter. The catch is Q4: adjusted EPS guidance of $2.32-$2.38 sits below the $2.39 consensus and RevPAR growth is guided to 3%-3.5%, with management flagging the midterm elections and the Middle East war as drags. The raised year offsets the soft quarter guide, but the Q4 miss versus consensus is the number traders will focus on.
At the time of this announcement, HLT was trading at $334.00 on NYSE in the Trade & Services sector, with a market capitalization of approximately $79.2B. The 52-week trading range was $253.54 to $364.50. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.