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Hilton Worldwide Holdings Inc. (HLT), headquartered in McLean, Virginia, is a hospitality company that manages, franchises, owns, and leases hotels and resorts. Valued at $58.7 billion by market cap, the company provides hospitality services through various hotel brands, such as Waldorf Astoria, Hilton Hotels & Resorts, Home2 Suites by Hilton, and more as well as owns over 8,300 properties across 138 countries. The hotel giant is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Thursday, Feb. 6.
Ahead of the event, analysts expect HLT to report a profit of $1.67 per share on a diluted basis, down marginally from $1.68 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect HLT to report EPS of $7, up 12.7% from $6.21 in fiscal 2023. Its EPS is expected to rise 12.4% year over year to $7.87 in fiscal 2025.
HLT stock has outperformed the S&P 500’s ($SPX) 22% gains over the past 52 weeks, with shares up 32.6% during this period. Similarly, it outperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 27.7% gains over the same time frame.
HLT’s outperformance is fueled by its strategic partnership with Olive by the Embassy Group, boosting its presence in India. Additionally, Hilton’s innovative brand portfolio and the rising demand for dependable accommodations position the company for sustained success.
On Oct. 23, HLT shares closed down more than 1% after reporting its Q3 results. Its revenue of $2.87 billion, missed Wall Street forecasts of $2.91 billion. The company’s adjusted EPS was $1.92, surpassing analyst estimates of $1.84. For Q4, HLT expects adjusted EPS to be between $1.57 and $1.67.
Analysts’ consensus opinion on HLT stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 22 analysts covering the stock, seven advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and 13 give a “Hold.” HLT’s average analyst price target is $243.94, indicating a potential upside of 1% from the current levels.
