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Hyatt Earnings & Revenues Miss Estimates in Q4, Stock Declines
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Hyatt Hotels Corporation (H - Free Report) has delivered fourth-quarter 2024 results, wherein earnings and revenues missed the Zacks Consensus Estimate. Following the results, the company’s shares moved down 4.4% in today’s pre-market trading session.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Hyatt’s Q4 Earnings & Revenues
Hyatt reported adjusted earnings per share (EPS) of 42 cents, missing the Zacks Consensus Estimate of 68 cents. In the year-ago quarter, the company reported an EPS of 70 cents.
Revenues of $1,602 million lagged the consensus mark of $1,631 million and decreased 3.5% on a year-over-year basis.
In the quarter, the company witnessed a 25.6% decline in Owned and Leased revenues to $264 million and an 82.3% decrease in Other revenues to $11 million. Distribution revenues also declined 4.7% to $205 million. However, Net fees increased 18.6% year over year to $281 million. Revenues for reimbursed costs increased to $841 million from $791 million reported in the prior-year quarter.
The company reported a 5% increase in comparable system-wide hotel RevPAR compared with the same period in 2023. Comparable system-wide all-inclusive resorts’ Net Package RevPAR rose 2.9% year over year.
Management stated that the demand in the fourth quarter faced headwinds due to the timing shift of the Jewish holidays and the U.S. election in November. In the United States, growth was primarily driven by the ongoing recovery in business transient travel. Meanwhile, RevPAR growth in Greater China remained flat year over year, marking a notable improvement from the third quarter of 2024 as business transient travel supported performance in Mainland China hotels. Additionally, international inbound travel continued to serve as a key growth driver across the Asia Pacific region, excluding Greater China.
Hyatt Hotels Corporation Price, Consensus and EPS Surprise
Adjusted EBITDA was $255 million, up 2.4% year over year. Our model predicted the metric to be $278.8 million.
Adjusted EBITDA of Management and Franchising as well as Distribution increased year over year by 7.2% and 199.6%, respectively, to $219 million and $20 million. On the other hand, Owned and Leased segment’s adjusted EBITDA dwindled 36.5% year over year to $57 million.
Balance Sheet of Hyatt
As of Dec. 31, 2024, Hyatt reported cash and cash equivalents of $1,383 million compared with $1,134 million in the previous quarter. Total liquidity was $2.9 billion in the fourth-quarter end. Total debt as of Dec. 31, 2024, was $3.78 billion.
Other Business Updates of Hyatt
Regarding hotel openings, 81 new hotels (or 20,721 rooms) joined Hyatt's system in the fourth quarter. As of Dec. 31, 2024, Hyatt had a pipeline of executed management or franchise contracts for approximately 720 hotels (or about 138,000 rooms).
Hyatt’s 2025 Outlook
For 2025, the company continues to expect adjusted general and administrative expenses to be between $450 million and $460 million. Capital expenditures are anticipated to be $150 million. Net rooms’ growth is anticipated to be between 6% and 7% year over year.
Management continues to anticipate 2025 system-wide RevPAR to rise 2-4% from 2024 levels. Adjusted EBITDA is expected to be in the band of $1.1-$1.15 billion. The company expects adjusted free cash flow to be in the range of $450-$500 million.
Royal Caribbean Cruises Ltd. (RCL - Free Report) posted mixed fourth-quarter 2024 results, with adjusted earnings beating the Zacks Consensus Estimate and revenues missing the same. Notably, both top and bottom lines increased on a year-over-year basis.
The company’s performance during the quarter was driven by stronger pricing on close-in demand and continued strength in onboard revenues. RCL’s diversified fleet offerings, accompanied by its commercial and vacation experiences, are witnessing robust demand trends amid an improving global market backdrop. Thanks to these tailwinds, RCL could achieve its Trifecta goals before the schedule, pointing out the benefits it is realizing from the current improving scenario.
Adtalem Global Education Inc. (ATGE - Free Report) posted better-than-expected results in second-quarter fiscal 2025. Earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year, driven by strong enrollment growth and strategic initiatives.
Adtalem's operational excellence strategy, Growth with Purpose, has driven six consecutive quarters of enrollment growth while supporting its mission to develop skilled healthcare professionals. Furthermore, strong demand at Chamberlain University and Walden University drove results. ATGE now expects fiscal 2025 adjusted earnings to be in the band of $6.10-$6.30 per share compared with the earlier prediction of $5.75-$5.95.
Las Vegas Sands Corp. (LVS - Free Report) reported fourth-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and net revenues beating the same. Both metrics declined on a year-over-year basis.
The company reported solid financial and operational performance at Marina Bay Sands, Singapore and continued recovery in the Macao market. LVS continues to execute strategic objectives and remains optimistic about achieving industry-leading growth in both Macao and Singapore through its ongoing capital investment initiatives. It is optimistic about the introduction of new suite offerings, enhanced service levels and increased tourism spending in Asia.
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Hyatt Earnings & Revenues Miss Estimates in Q4, Stock Declines
Hyatt Hotels Corporation (H - Free Report) has delivered fourth-quarter 2024 results, wherein earnings and revenues missed the Zacks Consensus Estimate. Following the results, the company’s shares moved down 4.4% in today’s pre-market trading session.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Hyatt’s Q4 Earnings & Revenues
Hyatt reported adjusted earnings per share (EPS) of 42 cents, missing the Zacks Consensus Estimate of 68 cents. In the year-ago quarter, the company reported an EPS of 70 cents.
Revenues of $1,602 million lagged the consensus mark of $1,631 million and decreased 3.5% on a year-over-year basis.
In the quarter, the company witnessed a 25.6% decline in Owned and Leased revenues to $264 million and an 82.3% decrease in Other revenues to $11 million. Distribution revenues also declined 4.7% to $205 million. However, Net fees increased 18.6% year over year to $281 million. Revenues for reimbursed costs increased to $841 million from $791 million reported in the prior-year quarter.
The company reported a 5% increase in comparable system-wide hotel RevPAR compared with the same period in 2023. Comparable system-wide all-inclusive resorts’ Net Package RevPAR rose 2.9% year over year.
Management stated that the demand in the fourth quarter faced headwinds due to the timing shift of the Jewish holidays and the U.S. election in November. In the United States, growth was primarily driven by the ongoing recovery in business transient travel. Meanwhile, RevPAR growth in Greater China remained flat year over year, marking a notable improvement from the third quarter of 2024 as business transient travel supported performance in Mainland China hotels. Additionally, international inbound travel continued to serve as a key growth driver across the Asia Pacific region, excluding Greater China.
Hyatt Hotels Corporation Price, Consensus and EPS Surprise
Hyatt Hotels Corporation price-consensus-eps-surprise-chart | Hyatt Hotels Corporation Quote
Hyatt’s Operating Highlights
Adjusted EBITDA was $255 million, up 2.4% year over year. Our model predicted the metric to be $278.8 million.
Adjusted EBITDA of Management and Franchising as well as Distribution increased year over year by 7.2% and 199.6%, respectively, to $219 million and $20 million. On the other hand, Owned and Leased segment’s adjusted EBITDA dwindled 36.5% year over year to $57 million.
Balance Sheet of Hyatt
As of Dec. 31, 2024, Hyatt reported cash and cash equivalents of $1,383 million compared with $1,134 million in the previous quarter. Total liquidity was $2.9 billion in the fourth-quarter end. Total debt as of Dec. 31, 2024, was $3.78 billion.
Other Business Updates of Hyatt
Regarding hotel openings, 81 new hotels (or 20,721 rooms) joined Hyatt's system in the fourth quarter. As of Dec. 31, 2024, Hyatt had a pipeline of executed management or franchise contracts for approximately 720 hotels (or about 138,000 rooms).
Hyatt’s 2025 Outlook
For 2025, the company continues to expect adjusted general and administrative expenses to be between $450 million and $460 million. Capital expenditures are anticipated to be $150 million. Net rooms’ growth is anticipated to be between 6% and 7% year over year.
Management continues to anticipate 2025 system-wide RevPAR to rise 2-4% from 2024 levels. Adjusted EBITDA is expected to be in the band of $1.1-$1.15 billion. The company expects adjusted free cash flow to be in the range of $450-$500 million.
H currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Consumer Discretionary Releases
Royal Caribbean Cruises Ltd. (RCL - Free Report) posted mixed fourth-quarter 2024 results, with adjusted earnings beating the Zacks Consensus Estimate and revenues missing the same. Notably, both top and bottom lines increased on a year-over-year basis.
The company’s performance during the quarter was driven by stronger pricing on close-in demand and continued strength in onboard revenues. RCL’s diversified fleet offerings, accompanied by its commercial and vacation experiences, are witnessing robust demand trends amid an improving global market backdrop. Thanks to these tailwinds, RCL could achieve its Trifecta goals before the schedule, pointing out the benefits it is realizing from the current improving scenario.
Adtalem Global Education Inc. (ATGE - Free Report) posted better-than-expected results in second-quarter fiscal 2025. Earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year, driven by strong enrollment growth and strategic initiatives.
Adtalem's operational excellence strategy, Growth with Purpose, has driven six consecutive quarters of enrollment growth while supporting its mission to develop skilled healthcare professionals. Furthermore, strong demand at Chamberlain University and Walden University drove results. ATGE now expects fiscal 2025 adjusted earnings to be in the band of $6.10-$6.30 per share compared with the earlier prediction of $5.75-$5.95.
Las Vegas Sands Corp. (LVS - Free Report) reported fourth-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and net revenues beating the same. Both metrics declined on a year-over-year basis.
The company reported solid financial and operational performance at Marina Bay Sands, Singapore and continued recovery in the Macao market. LVS continues to execute strategic objectives and remains optimistic about achieving industry-leading growth in both Macao and Singapore through its ongoing capital investment initiatives. It is optimistic about the introduction of new suite offerings, enhanced service levels and increased tourism spending in Asia.