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Why Is Hyatt Hotels (H) Up 13.2% Since Last Earnings Report?
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A month has gone by since the last earnings report for Hyatt Hotels (H - Free Report) . Shares have added about 13.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Hyatt Hotels due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Hyatt Q2 Earnings Beat, Revenues Lag Estimates
Hyatt delivered second-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. The company’s top line declined year over year.
The timing of Easter, renovations at major resort properties and the lingering impact of the 2023 Maui wildfires affected the company's performance.
Q2 Earnings & Revenues
Hyatt reported adjusted earnings per share (EPS) of $1.53, beating the Zacks Consensus Estimate of 95 cents. In the year-ago quarter, the company reported an EPS of 86 cents.
Revenues of $1,703 million lagged the consensus mark of $1,756 million and declined 0.1% on a year-over-year basis.
The year-over-year decline in revenues was due to a 7.9% decline in Owned and Leased revenues to $314 million and a 85.9% decrease in Other revenues. This was partially offset by Net fees increase of 10.6% year over year to $259 million and a Distribution increase of 1.1% to $278 million. Moreover, revenues for reimbursed costs increased to $842 million from $784 million reported in the prior year quarter.
Operating Highlights
Adjusted EBITDA was $307 million, up 10.1% year over year.
Adjusted EBITDA of Management and Franchising, as well as Distribution increased year over year by 10.5% and 23.9% to $222 million and $43 million, respectively. On the other hand, Owned and Leased, segment’s adjusted EBITDA declined 7.4% year over year to $79 million.
Balance Sheet
As of Jun 30, 2024, Hyatt reported cash and cash equivalents of $1,957 million compared with $794 million reported in the previous quarter. Total liquidity was $3.5 billion in the second-quarter end. Total debt as of Jun 30, 2024, was $3.9 billion.
Other Business Updates
Regarding hotel openings, 18 new hotels (or 3,251 rooms) joined Hyatt's system in the second quarter. As of Jun 30, 2024, Hyatt had a pipeline of executed management or franchise contracts for approximately 670 hotels (or about 130,000 rooms).
2024 Outlook
For 2024, the company expects adjusted general and administrative expenses to be between $425 million and $435 million. Capital expenditures are projected to be $170 million. Net room growth is anticipated to be between 5.5% and 6% year over year.
Management anticipates 2024 system-wide RevPAR to rise 3-4% from 2023 levels, down from the prior estimate of 3-5%. Adjusted EBITDA is now expected to be in the band of $1.13-$1.17 billion compared with the prior expected range of $1.15-$1.19 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
The consensus estimate has shifted 34.42% due to these changes.
VGM Scores
At this time, Hyatt Hotels has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Hyatt Hotels has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Hyatt Hotels belongs to the Zacks Hotels and Motels industry. Another stock from the same industry, Marriott International (MAR - Free Report) , has gained 6.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Marriott reported revenues of $6.44 billion in the last reported quarter, representing a year-over-year change of +6%. EPS of $2.50 for the same period compares with $2.26 a year ago.
For the current quarter, Marriott is expected to post earnings of $2.31 per share, indicating a change of +9.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.4% over the last 30 days.
Marriott has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Why Is Hyatt Hotels (H) Up 13.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Hyatt Hotels (H - Free Report) . Shares have added about 13.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Hyatt Hotels due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Hyatt Q2 Earnings Beat, Revenues Lag Estimates
Hyatt delivered second-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. The company’s top line declined year over year.
The timing of Easter, renovations at major resort properties and the lingering impact of the 2023 Maui wildfires affected the company's performance.
Q2 Earnings & Revenues
Hyatt reported adjusted earnings per share (EPS) of $1.53, beating the Zacks Consensus Estimate of 95 cents. In the year-ago quarter, the company reported an EPS of 86 cents.
Revenues of $1,703 million lagged the consensus mark of $1,756 million and declined 0.1% on a year-over-year basis.
The year-over-year decline in revenues was due to a 7.9% decline in Owned and Leased revenues to $314 million and a 85.9% decrease in Other revenues. This was partially offset by Net fees increase of 10.6% year over year to $259 million and a Distribution increase of 1.1% to $278 million. Moreover, revenues for reimbursed costs increased to $842 million from $784 million reported in the prior year quarter.
Operating Highlights
Adjusted EBITDA was $307 million, up 10.1% year over year.
Adjusted EBITDA of Management and Franchising, as well as Distribution increased year over year by 10.5% and 23.9% to $222 million and $43 million, respectively. On the other hand, Owned and Leased, segment’s adjusted EBITDA declined 7.4% year over year to $79 million.
Balance Sheet
As of Jun 30, 2024, Hyatt reported cash and cash equivalents of $1,957 million compared with $794 million reported in the previous quarter. Total liquidity was $3.5 billion in the second-quarter end. Total debt as of Jun 30, 2024, was $3.9 billion.
Other Business Updates
Regarding hotel openings, 18 new hotels (or 3,251 rooms) joined Hyatt's system in the second quarter. As of Jun 30, 2024, Hyatt had a pipeline of executed management or franchise contracts for approximately 670 hotels (or about 130,000 rooms).
2024 Outlook
For 2024, the company expects adjusted general and administrative expenses to be between $425 million and $435 million. Capital expenditures are projected to be $170 million. Net room growth is anticipated to be between 5.5% and 6% year over year.
Management anticipates 2024 system-wide RevPAR to rise 3-4% from 2023 levels, down from the prior estimate of 3-5%. Adjusted EBITDA is now expected to be in the band of $1.13-$1.17 billion compared with the prior expected range of $1.15-$1.19 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
The consensus estimate has shifted 34.42% due to these changes.
VGM Scores
At this time, Hyatt Hotels has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Hyatt Hotels has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Hyatt Hotels belongs to the Zacks Hotels and Motels industry. Another stock from the same industry, Marriott International (MAR - Free Report) , has gained 6.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Marriott reported revenues of $6.44 billion in the last reported quarter, representing a year-over-year change of +6%. EPS of $2.50 for the same period compares with $2.26 a year ago.
For the current quarter, Marriott is expected to post earnings of $2.31 per share, indicating a change of +9.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.4% over the last 30 days.
Marriott has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.