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Hilton Worldwide Holdings Inc. (HLT), headquartered in McLean, Virginia, is a leading global hospitality company renowned for its extensive portfolio of hotels and resorts. With a market cap of $53.61 billion, HLT offers premium services and accommodations across various brands, catering to business and leisure travelers. The company's diverse range of properties spans luxury, full-service, and midscale segments, serving guests in numerous locations worldwide. HLT is set to report its fiscal second-quarter earnings for 2024 on Wednesday, Jul. 24.
Ahead of the event, analysts expect HLT to report a profit of $1.85 per share, up 13.5% from $1.63 per share in the year-ago quarter. The company has consistently beaten or matched Wall Street’s EPS estimates in its last four quarterly reports.
Its adjusted earnings of $1.53 per share for the last reported quarter surpassed the consensus estimate by 8.5%. Higher RevPAR, occupancy rates, ADR, and its fee-based business model led to a 12.2% year-over-year revenue increase.
For fiscal 2024, analysts expect HLT to report EPS of $7.07, up 13.9% from $6.21 in fiscal 2023. Fiscal 2025 EPS is expected to grow 16.3% year over year to $8.22.
HLT stock is up 17.8% on a YTD basis, marginally outperforming the broader S&P 500 Index's ($SPX) 16.7% returns. The stock has significantly outperformed the Defiance Hotel, Airline, and Cruise ETF’s (CRUZ) marginal gain over the same time frame.
Hilton Worldwide shares rose over 3% following its Q1 results on Apr. 24. The company's adjusted EBITDA was $750 million, surpassing the consensus estimate of $705.40 million. HLT also increased its full-year adjusted EBITDA guidance to between $3.38 billion and $3.43 billion from the previous forecast of $3.33 billion to $3.38 billion. Additionally, Hilton expects net unit growth of 6% to 6.5% for the full year.
The consensus opinion on HLT stock is optimistic, with an overall “Moderate Buy” rating. Out of 20 analysts covering the stock, six advise a “Strong Buy” rating, two recommend a “Moderate Buy,” and 12 analysts suggest a “Hold.” The average analyst price target for HLT is $217.03, indicating a potential upside of 1.2% from the current levels.
On the date of publication, Rashmi Kumari 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.
