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Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
In the last reported quarter, adjusted earnings per share (EPS) of $1.92 topped the Zacks Consensus Estimate of $1.85 by 3.8%. The reported value rose 15% from the year-ago quarter’s adjusted EPS of $1.67.
The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 5.8%.
Trend in Estimate Revision of HLT
The Zacks Consensus Estimate for fourth-quarter EPS has increased to $1.68 from $1.67 in the past seven days. The projected figure suggests no year-over-year change from the same quarter last year.
Hilton Worldwide Holdings Inc. Price and EPS Surprise
For revenues, the consensus mark is pegged at nearly $2.75 billion, suggesting growth of 5.3% from the prior-year quarter’s figure.
Let's look at how things have shaped up in the quarter.
Factors Likely to Shape Hilton’s Quarterly Results
Hilton’s fourth-quarter revenues are expected to increase year over year, courtesy of strong group bookings, a steady recovery in business travel and continued expansion in international markets. This and the emphasis on the development pipeline and strategic partnerships, such as its collaboration with Small Luxury Hotels of the World, are likely to have aided the company’s performance in the to-be-reported quarter.
Improvement in system-wide revenue per available room (RevPAR), attributable to increased occupancy rates and average daily rate and favorable calendar shifts is likely to have driven the company’s third-quarter top line. For fourth-quarter 2024, the company expects RevPAR growth to be between 1% and 2% year over year.
Strong contributions across the company’s Management and Franchise Hotels and Owned and leased hotels are likely to get reflected in the fourth-quarter top line. We expect revenues from Management and Franchise Hotels and Owned and leased hotels to increase 3.1% year over year (to $796.6 million) and 7.7% year over year (to $344.6 million), respectively.
Hilton’s margins are likely to benefit from disciplined pricing strategies and cost efficiencies. The company’s ability to maintain rate integrity across key segments, coupled with operational improvements, is likely to support earnings growth. That said, inflationary pressures on labor and input costs may limit margin expansion.
For fourth-quarter 2024, Hilton anticipates net income in the range of $371-$395 million. The company anticipates fourth-quarter adjusted EBITDA between $804 million and $834 million. It expects fourth-quarter EPS (adjusted for special items) to be between $1.57 and $1.67.
What Our Model Says About HLT Stock
Our proven model predicts a likely 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.
HLT’s Earnings ESP: Hilton has an Earnings ESP of +1.42%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
HLT’s Zacks Rank: The company has a Zacks Rank #3.
Other Stocks With the Favorable Combination
Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these, too, have the right combination of elements to deliver an earnings beat this time around.
LTH is expected to register a 10.5% increase in earnings for the to-be-reported quarter. It reported earnings beat in three of the trailing four quarters and missed on one occasion, with an average surprise of 46.2%.
Trip.com Group Limited (TCOM - Free Report) currently has an Earnings ESP of +0.97% and a Zacks Rank of 1.
TCOM reported earnings beat in each of the trailing four quarters, with an average surprise of 42.8%. Its earnings for the to-be-reported quarter are expected to decrease 7.1%.
Rush Street Interactive, Inc. (RSI - Free Report) currently has an Earnings ESP of +22.22% and a Zacks Rank of 1.
RSI’s earnings for the to-be-reported quarter are expected to increase 800%. It reported earnings beat in each of the trailing four quarters, the average surprise being 225%.
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Hilton to Post Q4 Earnings: What's in the Cards for the Stock?
Hilton Worldwide Holdings Inc. (HLT - Free Report) is scheduled to report its fourth-quarter 2024 results on Feb. 6, before the opening bell.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
In the last reported quarter, adjusted earnings per share (EPS) of $1.92 topped the Zacks Consensus Estimate of $1.85 by 3.8%. The reported value rose 15% from the year-ago quarter’s adjusted EPS of $1.67.
The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 5.8%.
Trend in Estimate Revision of HLT
The Zacks Consensus Estimate for fourth-quarter EPS has increased to $1.68 from $1.67 in the past seven days. The projected figure suggests no year-over-year change from the same quarter last year.
Hilton Worldwide Holdings Inc. Price and EPS Surprise
Hilton Worldwide Holdings Inc. price-eps-surprise | Hilton Worldwide Holdings Inc. Quote
For revenues, the consensus mark is pegged at nearly $2.75 billion, suggesting growth of 5.3% from the prior-year quarter’s figure.
Let's look at how things have shaped up in the quarter.
Factors Likely to Shape Hilton’s Quarterly Results
Hilton’s fourth-quarter revenues are expected to increase year over year, courtesy of strong group bookings, a steady recovery in business travel and continued expansion in international markets. This and the emphasis on the development pipeline and strategic partnerships, such as its collaboration with Small Luxury Hotels of the World, are likely to have aided the company’s performance in the to-be-reported quarter.
Improvement in system-wide revenue per available room (RevPAR), attributable to increased occupancy rates and average daily rate and favorable calendar shifts is likely to have driven the company’s third-quarter top line. For fourth-quarter 2024, the company expects RevPAR growth to be between 1% and 2% year over year.
Strong contributions across the company’s Management and Franchise Hotels and Owned and leased hotels are likely to get reflected in the fourth-quarter top line. We expect revenues from Management and Franchise Hotels and Owned and leased hotels to increase 3.1% year over year (to $796.6 million) and 7.7% year over year (to $344.6 million), respectively.
Hilton’s margins are likely to benefit from disciplined pricing strategies and cost efficiencies. The company’s ability to maintain rate integrity across key segments, coupled with operational improvements, is likely to support earnings growth. That said, inflationary pressures on labor and input costs may limit margin expansion.
For fourth-quarter 2024, Hilton anticipates net income in the range of $371-$395 million. The company anticipates fourth-quarter adjusted EBITDA between $804 million and $834 million. It expects fourth-quarter EPS (adjusted for special items) to be between $1.57 and $1.67.
What Our Model Says About HLT Stock
Our proven model predicts a likely 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.
HLT’s Earnings ESP: Hilton has an Earnings ESP of +1.42%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
HLT’s Zacks Rank: The company has a Zacks Rank #3.
Other Stocks With the Favorable Combination
Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these, too, have the right combination of elements to deliver an earnings beat this time around.
Life Time Group Holdings, Inc. (LTH - Free Report) has an Earnings ESP of +14.29% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
LTH is expected to register a 10.5% increase in earnings for the to-be-reported quarter. It reported earnings beat in three of the trailing four quarters and missed on one occasion, with an average surprise of 46.2%.
Trip.com Group Limited (TCOM - Free Report) currently has an Earnings ESP of +0.97% and a Zacks Rank of 1.
TCOM reported earnings beat in each of the trailing four quarters, with an average surprise of 42.8%. Its earnings for the to-be-reported quarter are expected to decrease 7.1%.
Rush Street Interactive, Inc. (RSI - Free Report) currently has an Earnings ESP of +22.22% and a Zacks Rank of 1.
RSI’s earnings for the to-be-reported quarter are expected to increase 800%. It reported earnings beat in each of the trailing four quarters, the average surprise being 225%.