We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hyatt (H) to Announce Q4 Earnings: What's in the Store?
Read MoreHide Full Article
Hyatt Hotels Corporation (H - Free Report) is scheduled to report fourth-quarter 2022 results on Feb 16, 2023, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 106.5%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 32 cents per share, indicating a rise of 111.5% from a loss of $2.78 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at approximately $1,499 million, suggesting a surge of 39.3% from the year-ago quarter’s reported figure.
Let's look at how things have shaped up in the quarter.
Factors to Note
Hyatt’s fourth-quarter 2022 performance is likely to have benefited from a rise in leisure transient demand, easing travel restrictions and ramped-up airline capacity. During the third quarter of 2022, leisure transient revenues reached 20% above 2019 levels on a comparable system-wide basis. Also, it reported sequential improvements in group travel and business transient demand. The company stated that system-wide group room revenues, which were down 7% (from 2019 levels) in June 2022, improved to being down 3% (from 2019 levels) in October 2022. Given the continued strength of leisure travel demand, favorable pricing environment and airlift activities, the momentum is likely to have continued in the fourth quarter.
Emphasis on integrating new growth platforms (through the Apple Leisure Group acquisition) is likely to have driven the fourth-quarter top line. During the previous quarter’s earnings call, the company reported solid segmental performance owing to strength in net package RevPAR, increased membership contracts for ALG’s Unlimited Vacation Club (approximately 9,200), guest departures (approximately 682,000) and strong unit pricing. During the quarter, net package RevPAR for comparable ALG resorts in the Americas was 29% of 2019 levels. Also, it stated benefits from the expansion in Europe and organic growth in the Americas. Given the emphasis on distribution capabilities (with an end-to-end booking process), strong operational execution and destination management services, the momentum is likely to have continued in the fourth quarter.
The solid performance of Owned and leased hotels and managed and franchised business segments is likely to have driven the top line in the fourth quarter. The Zacks Consensus Estimate for Owned and leased hotels revenues is currently pegged at $341 million, indicating growth of 21.8% from $280 million reported in the year-ago quarter. The consensus mark for Management and franchise fees is pegged at $220 million, indicating a surge of 57.1% from $140 million reported in the previous quarter.
However, supply chain issues and COVID-related restrictions (in certain markets) are likely to have hurt the company’s operations in the fourth quarter. Although revenue per available room (RevPAR) is likely to have increased sequentially in the Asia Pacific region, it is expected to have remained below pre-pandemic levels.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Hyatt this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) to beat earnings. But that's not the case here.
Earnings ESP: Hyatt has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
OneSpaWorld Holdings Limited (OSW - Free Report) has an Earnings ESP of +23.08% and a Zacks Rank #1.
Shares of OneSpaWorld have increased 3.8% in the past year. OSW’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 84.2%.
Monarch Casino & Resort, Inc. (MCRI - Free Report) has an Earnings ESP of +1.34% and a Zacks Rank #3.
Shares of Monarch Casino have increased 3.8% in the past year. MCRI’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 9.1%.
Roku, Inc. (ROKU - Free Report) has an Earnings ESP of +1.97% and a Zacks Rank #3.
Shares of Roku have declined 65.5% in the past year. ROKU’s earnings surpassed the estimates twice in the trailing four quarters and missed twice, the average surprise being 50.6%.
Image: Bigstock
Hyatt (H) to Announce Q4 Earnings: What's in the Store?
Hyatt Hotels Corporation (H - Free Report) is scheduled to report fourth-quarter 2022 results on Feb 16, 2023, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 106.5%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 32 cents per share, indicating a rise of 111.5% from a loss of $2.78 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at approximately $1,499 million, suggesting a surge of 39.3% from the year-ago quarter’s reported figure.
Hyatt Hotels Corporation Price and EPS Surprise
Hyatt Hotels Corporation price-eps-surprise | Hyatt Hotels Corporation Quote
Let's look at how things have shaped up in the quarter.
Factors to Note
Hyatt’s fourth-quarter 2022 performance is likely to have benefited from a rise in leisure transient demand, easing travel restrictions and ramped-up airline capacity. During the third quarter of 2022, leisure transient revenues reached 20% above 2019 levels on a comparable system-wide basis. Also, it reported sequential improvements in group travel and business transient demand. The company stated that system-wide group room revenues, which were down 7% (from 2019 levels) in June 2022, improved to being down 3% (from 2019 levels) in October 2022. Given the continued strength of leisure travel demand, favorable pricing environment and airlift activities, the momentum is likely to have continued in the fourth quarter.
Emphasis on integrating new growth platforms (through the Apple Leisure Group acquisition) is likely to have driven the fourth-quarter top line. During the previous quarter’s earnings call, the company reported solid segmental performance owing to strength in net package RevPAR, increased membership contracts for ALG’s Unlimited Vacation Club (approximately 9,200), guest departures (approximately 682,000) and strong unit pricing. During the quarter, net package RevPAR for comparable ALG resorts in the Americas was 29% of 2019 levels. Also, it stated benefits from the expansion in Europe and organic growth in the Americas. Given the emphasis on distribution capabilities (with an end-to-end booking process), strong operational execution and destination management services, the momentum is likely to have continued in the fourth quarter.
The solid performance of Owned and leased hotels and managed and franchised business segments is likely to have driven the top line in the fourth quarter. The Zacks Consensus Estimate for Owned and leased hotels revenues is currently pegged at $341 million, indicating growth of 21.8% from $280 million reported in the year-ago quarter. The consensus mark for Management and franchise fees is pegged at $220 million, indicating a surge of 57.1% from $140 million reported in the previous quarter.
However, supply chain issues and COVID-related restrictions (in certain markets) are likely to have hurt the company’s operations in the fourth quarter. Although revenue per available room (RevPAR) is likely to have increased sequentially in the Asia Pacific region, it is expected to have remained below pre-pandemic levels.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Hyatt this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) to beat earnings. But that's not the case here.
Earnings ESP: Hyatt has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat Earnings Estimates
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
OneSpaWorld Holdings Limited (OSW - Free Report) has an Earnings ESP of +23.08% and a Zacks Rank #1.
Shares of OneSpaWorld have increased 3.8% in the past year. OSW’s earnings surpassed the consensus mark in all the trailing four quarters, the average surprise being 84.2%.
Monarch Casino & Resort, Inc. (MCRI - Free Report) has an Earnings ESP of +1.34% and a Zacks Rank #3.
Shares of Monarch Casino have increased 3.8% in the past year. MCRI’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 9.1%.
Roku, Inc. (ROKU - Free Report) has an Earnings ESP of +1.97% and a Zacks Rank #3.
Shares of Roku have declined 65.5% in the past year. ROKU’s earnings surpassed the estimates twice in the trailing four quarters and missed twice, the average surprise being 50.6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.