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Peek Into Hotel Stocks' Earnings on Nov 3: H, SNOW
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With the Q3 earnings season well under way, the widely diversified Consumer Discretionary sector has hogged much of the attention.
According to the latest Earnings Outlook, 45.7% of the Consumer Discretionary companies in the S&P 500 index reported their results as of Nov 1. The growth rate for earnings and revenues is 7.1% and 8.0%, respectively. Moreover, the beat ratios for this sector have been noteworthy (62.5% for earnings and 43.8% for revenues).
Hotel Stocks in Focus
Turning our focus on the hotel stocks from the sector, we note that a number of companies have reported mixed results so far this earnings season.
Though increasing business and leisure travel as well as higher transaction volumes is boosting results, a decline in occupancy levels, negative currency translation, pockets of geopolitical instability and economic slowdown are denting top-line growth.
Among the hotel stocks that have already reported, Wyndham Worldwide Corporation posted mixed results for the third quarter of 2016, wherein earnings beat the Zacks Consensus Estimate while revenues missed the same. Hilton Worldwide Holdings Inc. (HLT - Free Report) too posted mixed results as it missed the consensus estimate for revenues while earnings came in line.
Two hotel companies are set to report their quarterly numbers on Nov 3. Will these companies manage to put up a decent performance? Let’s take a look at what might be in store for them:
Hyatt Hotels Corporation (H - Free Report) posted a positive earnings surprise of 39.13% last quarter. In fact, the company surpassed the Zacks Consensus Estimate in three of the trailing for quarters, with an average beat of 15.66%.
Notably, our proven model shows that an earnings beat is likely for Hyatt Hotels this time around. This is because the company has the right combination of the two key ingredients – a Zacks Rank #3 (Hold) or better and a positive Earnings ESP – to increase its odds of an earnings surprise. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
For the third quarter of 2016, the company has an Earnings ESP of +7.14% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 28 cents.
Improved transient demand and greater pricing power have been driving RevPAR over the past few quarters. We expect the trend to continue in Q3. However, lingering global uncertainties coupled with negative currency translation is likely to limit top-line growth (read more: Hyatt Hotels Q3 Earnings Preview: What's in the Cards?).
Our previous article did not conclusively show that Hyatt Hotels is likely to beat the Zacks Consensus Estimate this quarter. However, estimates changed thereafter and we are now quite confident about a likely beat.
Intrawest Resorts Holdings, Inc. (SNOW - Free Report) registered a 7.19% negative earnings surprise in the previous quarter. However, the trailing four-quarter average earnings surprise stands at a positive 5.40%.
For first-quarter fiscal 2017, the company has an Earnings ESP of 0.00%, which makes surprise prediction difficult even though the company has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarter’s bottom line is pegged at a loss of $1.06.
Don’t miss out on our full earnings release articles for these stocks, as the actual results might hold some surprises!
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Peek Into Hotel Stocks' Earnings on Nov 3: H, SNOW
With the Q3 earnings season well under way, the widely diversified Consumer Discretionary sector has hogged much of the attention.
According to the latest Earnings Outlook, 45.7% of the Consumer Discretionary companies in the S&P 500 index reported their results as of Nov 1. The growth rate for earnings and revenues is 7.1% and 8.0%, respectively. Moreover, the beat ratios for this sector have been noteworthy (62.5% for earnings and 43.8% for revenues).
Hotel Stocks in Focus
Turning our focus on the hotel stocks from the sector, we note that a number of companies have reported mixed results so far this earnings season.
Though increasing business and leisure travel as well as higher transaction volumes is boosting results, a decline in occupancy levels, negative currency translation, pockets of geopolitical instability and economic slowdown are denting top-line growth.
Among the hotel stocks that have already reported, Wyndham Worldwide Corporation posted mixed results for the third quarter of 2016, wherein earnings beat the Zacks Consensus Estimate while revenues missed the same. Hilton Worldwide Holdings Inc. (HLT - Free Report) too posted mixed results as it missed the consensus estimate for revenues while earnings came in line.
Two hotel companies are set to report their quarterly numbers on Nov 3. Will these companies manage to put up a decent performance? Let’s take a look at what might be in store for them:
Hyatt Hotels Corporation (H - Free Report) posted a positive earnings surprise of 39.13% last quarter. In fact, the company surpassed the Zacks Consensus Estimate in three of the trailing for quarters, with an average beat of 15.66%.
HYATT HOTELS CP Price and EPS Surprise
HYATT HOTELS CP Price and EPS Surprise | HYATT HOTELS CP Quote
Notably, our proven model shows that an earnings beat is likely for Hyatt Hotels this time around. This is because the company has the right combination of the two key ingredients – a Zacks Rank #3 (Hold) or better and a positive Earnings ESP – to increase its odds of an earnings surprise. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
For the third quarter of 2016, the company has an Earnings ESP of +7.14% and a Zacks Rank #3. The Zacks Consensus Estimate for the quarter’s earnings is pegged at 28 cents.
Improved transient demand and greater pricing power have been driving RevPAR over the past few quarters. We expect the trend to continue in Q3. However, lingering global uncertainties coupled with negative currency translation is likely to limit top-line growth (read more: Hyatt Hotels Q3 Earnings Preview: What's in the Cards?).
Our previous article did not conclusively show that Hyatt Hotels is likely to beat the Zacks Consensus Estimate this quarter. However, estimates changed thereafter and we are now quite confident about a likely beat.
Intrawest Resorts Holdings, Inc. (SNOW - Free Report) registered a 7.19% negative earnings surprise in the previous quarter. However, the trailing four-quarter average earnings surprise stands at a positive 5.40%.
INTRAWEST RESRT Price and EPS Surprise
INTRAWEST RESRT Price and EPS Surprise | INTRAWEST RESRT Quote
For first-quarter fiscal 2017, the company has an Earnings ESP of 0.00%, which makes surprise prediction difficult even though the company has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarter’s bottom line is pegged at a loss of $1.06.
Don’t miss out on our full earnings release articles for these stocks, as the actual results might hold some surprises!
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>