Hilton (HLT) Lags Q4 Earnings by a Penny, Beats Revenues - Tale of the Tape

Hilton Worldwide Holdings Inc. (HLT) is a leading global hospitality company and operates under a number of leading brands. This hotel company began trading in Dec 2013 and has a significant presence in major hospitality markets across the world.

 

The company has an industry-leading guest loyalty program — Hilton HHonors loyalty program — which serves over 40 million members worldwide.

 

Given its property locations and strong brand recognition, the company seems to be well-positioned. However, lingering political uncertainty in some of the regions where the company operates and is a concern.

 

Investors should also note the recent earnings estimate revisions for HLT, as the consensus estimate has been almost moving upwards. Meanwhile, HLT has a decent history in earnings season. Hilton has missed earnings results in one of the last four quarters, making for an average positive surprise of 5.56%. Meanwhile, the company has also missed revenue results in one of the trailing four quarters.


Currently, HLT has a Zacks Rank #2 (Buy) but that could change following Hilton’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

 

Earnings: HLT missed on earnings. Our consensus earnings estimate called for EPS of 18 cents per share, and the company reported EPS of 17 cents instead. Investors should note that these figures take out stock option expenses.

 

Revenues: HLT reported revenues of $2.83 billion. This beat our consensus estimate of $2.75 billion.

 

Key Stats to Note: System-wide comparable RevPAR increased 6.6% year over year for the fourth quarter on a currency neutral basis. U.S. comparable RevPAR increased 6.8% for while International RevPAR was up 5.8%. Adjusted EBITDA was $668 million in the fourth quarter, up 11% year over year.

 

Adjusted earnings per share is expected in the range of 78 to 83 cents in 2015, up year over year. Meanwhile, System-wide RevPAR is expected to increase between 5% to 7% on a comparable and currency neutral basis in 2015.

 

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