Hilton Sees Q4 Earnings Below Market, Backs FY24 Adj. EPS Forecast Below Street; Stock Dips

Hilton Worldwide Holdings

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Kaufen / Verkaufen

(RTTNews) - Hilton Worldwide Holdings, Inc. (HLT), while reporting weak third-quarter earnings, but above market estimates, on Wednesday issued fourth -quarter outlook below the Street. Further, the company revised down its fiscal 2024 earnings view on a reported basis, but maintained annual adjusted earnings outlook, below Street estimates.

In pre-market activity on the NYSE, Hilton shares were losing around 5.3 percent to trade at $225.50.

For the fourth quarter, the company projects net income to be between $371 million and $395 million and earnings per share between $1.49 and $1.59. Adjusted earnings per share is expected to be between $1.57 and $1.67.

Analysts on average expect the company to report earnings of $1.77 per share for the fourth quarter, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Adjusted EBITDA is projected to be between $804 million and $834 million. The company expects system-wide comparable RevPAR, on a currency neutral basis, to increase between 1.0 percent and 2.0 percent.

Further, for fiscal 2024, Hilton now expects net income between $1.405 billion and $1.429 billion, and earnings per share between $5.58 and $5.68. The company previously projected net income between $1.532 billion and $1.555 billion and earnings per share between $6.06 and $6.15.

However, the company continues to expect adjusted earnings per share between $6.93 and $7.03, while the Street estimates annual earnings of $7.06 per share.

Adjusted EBITDA is now projected to be between $3.375 billion and $3.405 billion.

System-wide comparable RevPAR, on a currency neutral basis, is now projected to increase between 2.0 percent and 2.5 percent compared to 2023, compared to previous estimate of an increase between 2 percent and 3 percent.

In its third quarter, Hilton reported a profit for third quarter that decreased from the same period last year but beat the Street estimates.

The company's bottom line totaled $344 million, or $1.38 per share, compared to $377 million or $1.44 per share last year.

Adjusted earnings were $477 million or $1.92 per share for the period. Analysts expected the company to earn $1.85 per share.

The company's revenue for the quarter rose 7.3 percent to $2.867 billion from $2.673 billion last year.

System-wide comparable RevPAR increased 1.4 percent due to increases in both occupancy and ADR, and management and franchise fee revenues increased 8.3 percent.

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