Hilton Worldwide Prepares for Earnings Release Amid Strong Stock Performance
Analysts anticipate slightly lower profits as the hotel giant continues to thrive in a competitive market.
Hilton Worldwide Holdings Inc. (HLT), based in McLean, Virginia, is a major player in the hospitality industry, managing, franchising, owning, and leasing hotels and resorts. With a market cap of $58.7 billion, the company operates a variety of hotel brands, including Waldorf Astoria, Hilton Hotels & Resorts, and Home2 Suites by Hilton, and boasts over 8,300 properties across 138 countries. Hilton is set to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Thursday, Feb. 6.
Ahead of the earnings announcement, analysts predict that HLT will report a profit of $1.67 per share on a diluted basis, which is a slight decrease from the $1.68 per share reported in the same quarter last year. Importantly, Hilton has a track record of exceeding Wall Street’s earnings-per-share (EPS) estimates in its last four quarterly reports.
For the full year, analysts forecast that Hilton will achieve an EPS of $7, representing a 12.7% increase from the $6.21 reported in fiscal 2023. In fiscal 2025, HLT’s EPS is expected to rise further, increasing 12.4% year over year to $7.87.
In the past 52 weeks, HLT stock has outperformed the S&P 500 index ($SPX), which saw gains of 22%. Hilton’s shares increased by 32.6% during this time. Additionally, HLT outperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 27.7% growth in the same period.
The company’s strong performance is supported by its strategic partnership with Olive by the Embassy Group, enhancing its footprint in India. Furthermore, Hilton’s broad range of brands, along with increasing demand for reliable accommodations, positions it for continued success.
After reporting its Q3 results on Oct. 23, HLT’s shares dropped more than 1%. The company’s revenue of $2.87 billion fell short of Wall Street’s expectations of $2.91 billion. However, its adjusted EPS came in at $1.92, exceeding analyst forecasts of $1.84. For Q4, Hilton anticipates adjusted EPS to range between $1.57 and $1.67.
Analysts have a moderately positive view on HLT stock, giving it an overall “Moderate Buy” rating. Of the 22 analysts covering the stock, seven recommend a “Strong Buy,” two suggest a “Moderate Buy,” and 13 advise a “Hold.” Currently, HLT’s average analyst price target is $243.94, indicating a potential upside of 1% from current levels.
On the date of publication,
Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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