Hilton (HLT) Gears Up for Q4 Earnings: What's in the Offing?
Hilton Worldwide Holdings Inc. HLT is scheduled to report fourth-quarter 2022 results on Feb 9, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 4.8%.
The Zacks Consensus Estimate for the fourth-quarter bottom line is pegged at $1.22 per share, indicating an improvement of 69.4% from 72 cents reported in the year-ago quarter.
The Zacks Consensus Estimate for revenues is pegged at $2.34 billion, suggesting growth of 27.3% from the prior-year quarter’s figure.
Factors to Note
Hilton’s fourth-quarter performance is likely to have benefited from an increase in demand, loyalty program and unit expansion efforts. Strong leisure demand, combined with improving transient business trends, are anticipated to have favored the company’s performance. Emphasis on unit expansion, luxury development strategy, hotel conversions, strategic partnerships and loyalty program bodes well.
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 fourth-quarter top line. We expect Franchise and licensing fees, as well as Base and other management fees, to increase 23.1% and 16.3% year over year to $530.4 million and $69.8 million, respectively.
Incentive management fees are projected at $47.7 million, suggesting an improvement of 25.6% from $38 million reported in the year-ago quarter. Revenues from Owned and leased hotels are pegged at $314.1 million, suggesting a rise of 41.5% from $222 million recorded in the year-ago quarter.
The company is also likely to have benefited from improvement in RevPAR. However, high operating and fixed costs, stemming from the pandemic, are likely to have weighed on margins in the to-be-reported quarter.
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 does not conclusively predict 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. But that's not the case here.
Earnings ESP: Hilton has an Earnings ESP of -4.40%. 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.
Stocks Posed to Beat earnings
Here are some 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.
Red Rock Resorts, Inc. RRR has an Earnings ESP of +6.43% and a Zacks Rank #3.
Shares of Red Rock Resorts have gained 3.6% in the past year. RRR’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 66.7%.
Roku, Inc. ROKU has an Earnings ESP of +1.97% and a Zacks Rank #3.
Shares of Roku have declined 61.8% in the past year. ROKU’s earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters and missed twice, the average surprise being 50.6%.
Planet Fitness, Inc. PLNT has an Earnings ESP of +2.53% and a Zacks Rank #3.
Shares of Planet Fitness have declined 5.2% in the past year. PLNT’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report
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Roku, Inc. (ROKU) : Free Stock Analysis Report
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