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McLean, Virginia-based Hilton Worldwide Holdings Inc. (HLT) provides hospitality services. Valued at $57.5 billion by market cap, the company manages, franchises, owns, and leases hotels, resorts, and time share properties worldwide. The hotel giant is expected to announce its fiscal third-quarter earnings for 2024 before the market opens on Wednesday, Oct. 23.
Ahead of the event, analysts expect HLT to report a profit of $1.85 per share on a diluted basis, up 10.8% from $1.67 per share in the year-ago quarter. The company beat or matched the consensus estimates in each of the last four quarters. During the previous quarter, HLT completed the acquisition of the Graduate Hotels brand, expanding its lifestyle portfolio.
For the full year, analysts expect HLT to report EPS of $7.05, up 13.5% from $6.21 in fiscal 2023. Its EPS is expected to rise 14.8% year over year to $8.09 in fiscal 2025.
HLT stock has outperformed the S&P 500’s ($SPX) 33.1% gains over the past 52 weeks, with shares up 55.1% during this period. Similarly, it outshined the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 22.8% gains over the same time frame.
Hilton's success is driven by its asset-light franchising model and strong demand for branded hotels, especially among younger travelers. Its loyalty program has boosted revenue per available room (RevPAR) and direct bookings, leading to increased profitability. The company's focus on unit expansion, partnerships, and loyalty programs is driving continued growth. Hilton's franchise strategy is capitalizing on global travel trends, adding new hotel rooms through acquisitions and organic development. With a focus on growth and price optimization, the company is generating higher profits through licensing fees.
On Aug. 7, HLT shares closed down more than 1% after reporting its Q2 results. Its adjusted EPS increased 17.2% year over year to $1.91. The company’s revenues stood at $2.95 billion, up 10.9% year over year. The results were in line with analysts’ expectations.
Analysts’ consensus opinion on HLT stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 22 analysts covering the stock, eight advise a “Strong Buy” rating, two suggest a “Moderate Buy” rating, and 12 give a “Hold.” While HLT currently trades above its mean price target of $220.90, the Street-high price target of $254 suggests an upside potential of 9.7%.
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.
