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Hilton (HLT) Gears Up for Q2 Earnings: What's in Store?
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Hilton Worldwide Holdings Inc. (HLT - Free Report) is scheduled to report second-quarter 2024 results on Aug 7 before the opening bell. In the last reported quarter, the company registered an earnings surprise of 8.5%.
How are Estimates Faring?
The Zacks Consensus Estimate for the second-quarter bottom line is pegged at $1.85 per share, indicating an increase of 13.5% from $1.63 reported in the year-ago quarter. For revenues, the consensus mark is pegged at $2.97 billion, implying growth of 11.8% from the prior-year quarter’s figure.
Let's take a look at how things might have shaped up in the quarter.
Factors at Play
Hilton’s second-quarter results are likely to have been aided by steady leisure demand and notable improvements in revenue per available room (RevPAR), attributed to higher occupancy rates and average daily rates. The company is also likely to have benefited from its fee-based business model and robust development initiatives. This and the emphasis on unit expansion, loyalty programs and asset-light business model are likely to have aided the company’s performance in the to-be-reported quarter.
For second-quarter 2024, the company expects RevPAR growth to be between 2% and 4% year over year. On the other hand, our model predicts systemwide RevPAR to increase 2.6% year over year. The company is likely to have witnessed RevPAR gains in Europe, Asia Pacific, the Middle East and Africa region, owing to strong leisure demand and recovery in international inbound travel. HLT anticipates the momentum to persist for some time.
Strong contributions across the company’s Base and other management fees, Incentive management fees and Owned and leased hotels are likely to be reflected in the second-quarter top line. We expect Franchise and licensing fees, Base and other management fees and Incentive Management Fees to increase 13.6% (to $701.8 million), 49.3% (to $128.4 million) and 22.9% (to $84.8 million), respectively, year over year.
For second-quarter 2024, Hilton anticipates net income in the range of $443-$457 million. Adjusted EBITDA is expected to be between $890 million and $910 million. It projects second-quarter EPS (adjusted for special items) to be between $1.80 and $1.86.
Hilton Worldwide Holdings Inc. Price and EPS Surprise
Our proven model predicts an earnings beat for Hilton this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Hilton has an Earnings ESP of +0.58% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hilton currently carries a Zacks Rank #3.
Other Stocks With the Favorable Combination
Here are some other stocks from the Zacks Consumer Discretionary space, which, too, have the right combination of elements to deliver an earnings beat this time around.
HGV’s earnings for the second quarter are expected to increase 4.7%. The company reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 7.2%.
Choice Hotels International, Inc. (CHH - Free Report) currently has an Earnings ESP of +1.51% and a Zacks Rank of 2.
CHH’s earnings for the second quarter are expected to increase 6.9%. The company reported better-than-expected earnings in three of the last four quarters and missed on the remaining occasion, the average surprise being 4.6%.
Madison Square Garden Sports Corp. (MSGS - Free Report) currently has an Earnings ESP of +203.00% and a Zacks Rank of 3.
MSGS’ earnings topped the Zacks Consensus Estimate in two of the last four quarters and missed the remaining two, the average negative surprise being 496.2%. Earnings for the second quarter of 2024 are expected to increase 184.6% year over year.
Image: Bigstock
Hilton (HLT) Gears Up for Q2 Earnings: What's in Store?
Hilton Worldwide Holdings Inc. (HLT - Free Report) is scheduled to report second-quarter 2024 results on Aug 7 before the opening bell. In the last reported quarter, the company registered an earnings surprise of 8.5%.
How are Estimates Faring?
The Zacks Consensus Estimate for the second-quarter bottom line is pegged at $1.85 per share, indicating an increase of 13.5% from $1.63 reported in the year-ago quarter. For revenues, the consensus mark is pegged at $2.97 billion, implying growth of 11.8% from the prior-year quarter’s figure.
Let's take a look at how things might have shaped up in the quarter.
Factors at Play
Hilton’s second-quarter results are likely to have been aided by steady leisure demand and notable improvements in revenue per available room (RevPAR), attributed to higher occupancy rates and average daily rates. The company is also likely to have benefited from its fee-based business model and robust development initiatives. This and the emphasis on unit expansion, loyalty programs and asset-light business model are likely to have aided the company’s performance in the to-be-reported quarter.
For second-quarter 2024, the company expects RevPAR growth to be between 2% and 4% year over year. On the other hand, our model predicts systemwide RevPAR to increase 2.6% year over year. The company is likely to have witnessed RevPAR gains in Europe, Asia Pacific, the Middle East and Africa region, owing to strong leisure demand and recovery in international inbound travel. HLT anticipates the momentum to persist for some time.
Strong contributions across the company’s Base and other management fees, Incentive management fees and Owned and leased hotels are likely to be reflected in the second-quarter top line. We expect Franchise and licensing fees, Base and other management fees and Incentive Management Fees to increase 13.6% (to $701.8 million), 49.3% (to $128.4 million) and 22.9% (to $84.8 million), respectively, year over year.
For second-quarter 2024, Hilton anticipates net income in the range of $443-$457 million. Adjusted EBITDA is expected to be between $890 million and $910 million. It projects second-quarter EPS (adjusted for special items) to be between $1.80 and $1.86.
Hilton Worldwide Holdings Inc. Price and EPS Surprise
Hilton Worldwide Holdings Inc. price-eps-surprise | Hilton Worldwide Holdings Inc. Quote
What Our Model Says
Our proven model predicts an earnings beat for Hilton this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Hilton has an Earnings ESP of +0.58% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hilton currently carries a Zacks Rank #3.
Other Stocks With the Favorable Combination
Here are some other stocks from the Zacks Consumer Discretionary space, which, too, have the right combination of elements to deliver an earnings beat this time around.
Hilton Grand Vacations (HGV - Free Report) currently has an Earnings ESP of +16.12% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
HGV’s earnings for the second quarter are expected to increase 4.7%. The company reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 7.2%.
Choice Hotels International, Inc. (CHH - Free Report) currently has an Earnings ESP of +1.51% and a Zacks Rank of 2.
CHH’s earnings for the second quarter are expected to increase 6.9%. The company reported better-than-expected earnings in three of the last four quarters and missed on the remaining occasion, the average surprise being 4.6%.
Madison Square Garden Sports Corp. (MSGS - Free Report) currently has an Earnings ESP of +203.00% and a Zacks Rank of 3.
MSGS’ earnings topped the Zacks Consensus Estimate in two of the last four quarters and missed the remaining two, the average negative surprise being 496.2%. Earnings for the second quarter of 2024 are expected to increase 184.6% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.