Advertisement
Australia markets closed
  • ALL ORDS

    8,205.50
    -3.10 (-0.04%)
     
  • AUD/USD

    0.6602
    -0.0018 (-0.27%)
     
  • ASX 200

    7,963.70
    -7.40 (-0.09%)
     
  • OIL

    77.98
    +1.02 (+1.33%)
     
  • GOLD

    2,419.00
    +11.70 (+0.49%)
     
  • Bitcoin AUD

    100,640.26
    -273.47 (-0.27%)
     
  • CMC Crypto 200

    1,369.10
    +3.20 (+0.23%)
     

Hilton (HLT) to Report Q1 Earnings: What's in the Cards?

Hilton Worldwide Holdings Inc. HLT is scheduled to report first-quarter 2023 results on Apr 26, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 32.5%.

How are Estimates Faring?

The Zacks Consensus Estimate for the first-quarter bottom line is pegged at $1.14 per share, indicating an improvement of 60.6% from 71 cents reported in the year-ago quarter.

For revenues, the consensus mark is pegged at $2,262 million, suggesting growth of 31.4% from the prior-year quarter’s figure.

Hilton Worldwide Holdings Inc. Price and EPS Surprise

 

Hilton Worldwide Holdings Inc. Price and EPS Surprise
Hilton Worldwide Holdings Inc. Price and EPS Surprise

Hilton Worldwide Holdings Inc. price-eps-surprise | Hilton Worldwide Holdings Inc. Quote

ADVERTISEMENT

 

Let's take a look at how things have shaped up in the quarter.

Factors at Play

Hilton’s first-quarter performance is likely to have benefited from a rise in leisure demand, recovery in international inbound travel and unit-expansion efforts. This and the emphasis on luxury development strategy, hotel conversions, loyalty program and an asset-light business model are likely to have aided the company’s performance in the to-be reported quarter.

Strong leisure transient trends and steady recovery in business transient and group travel are likely to have aided the company’s performance in the to-be-reported quarter. During the fourth quarter of 2022, system-wide comparable revenue per available room (RevPAR) increased 24.8% year over year (on a currency-neutral basis), owing to an increase in occupancy and average daily rate. Also, RevPAR was up 7.5% from 2019 levels. HLT generated solid RevPAR gains in Europe, the Middle East and Africa owing to strong leisure demand and recovery in international inbound travel. The company witnessed significant recovery across Asia and solid growth in U.S. urban markets. With continued improvement across all regions, the momentum is likely to have been continued in the to-be-reported quarter. For the first quarter of 2023, the company anticipates system-wide RevPAR growth to be between 23% and 27% on a year-over-year basis.

Strong contributions across the company’s Base and other management fees, Incentive management fees and Owned and leased hotels are likely to get reflected in the first-quarter top line. We expect Franchise and licensing fees, Base and other management fees and Incentive Management Fees to increase 28.7% year over year (to $531.5 million), 27.1% year over year (to $69.9 million) and 37.1% year over year (to $46.6 million), respectively.

However, pandemic-related restrictions in certain areas of China are likely to have impacted demand in the to-be-reported quarter.

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 +5.73%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks Poised to Beat Earnings Estimates

Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.

Wynn Resorts, Limited WYNN has an Earnings ESP of +111.38% and a Zacks Rank #2.

Shares of Wynn Resorts have surged 55.3% in the past year. WYNN’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 0.6%.

Choice Hotels International, Inc. CHH has an Earnings ESP of +7.21% and a Zacks Rank #3.

The stock has declined 9.9% in the past year. CHH’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 3.5%.

Civeo Corporation CVEO has an Earnings ESP of +38.46% and a Zacks Rank #3.

Shares of Civeo have declined 21.1% in the past year. CVEO’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 26.1%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report

Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report

Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report

Civeo Corporation (CVEO) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research