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.
Is a Beat in Store for Hilton (HLT) this Earning Season?
Read MoreHide Full Article
We expect Hilton Worldwide Holdings Inc. (HLT - Free Report) to beat expectations when it reports first-quarter 2017 numbers on May 2, before the opening bell.
Last quarter, this leading global hospitality company posted positive earnings surprise of 7.69%. In fact, the company outpaced/met earnings estimates in three of the trailing four-quarters with an average beat of 2.52%.
Let’s see how things are shaping up prior to this announcement.
Hilton Worldwide Holdings Inc. Price and EPS Surprise
Our proven model shows that Hilton is likely to beat earnings because it has the perfect combination of the two key ingredients.
Zacks ESP: Hilton Brands has an Earnings ESP of +10.71%. This is because the Most Accurate estimate is 31 cents, while the Zacks Consensus Estimate is pegged lower at 28 cents. A favorable Earnings ESP serves as a meaningful indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hilton currently carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates. Conversely, sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The combination of Restaurant Brands favorable Zacks Rank and positive Earnings ESP makes us reasonably confident of an earnings beat.
What is Driving Better-than-Expected Earnings?
Hilton witnessed growth in its system-wide revenue per available room (RevPAR) in the fourth quarter, primarily owing to better-than-expected transient demand. The company’s geographic exposure, solid transient business as well as improving group business trends are expected to have continued driving RevPAR in the to-be-reported quarter as well.
Notably, system-wide RevPAR growth is projected to be in the band of 1–3% in the first quarter of 2017. Further, adjusted earnings are anticipated to be between 24 cents and 29 cents, while adjusted EBITDA (Earnings before Interest, Tax, Depreciation, and Amortization) is expected in the band of $380 million to $400 million.
Moreover, the company expects first-quarter results to be buoyed by strong unit development and tremendous growth in loyalty program given its scale, size, industry-leading brands and commercial platform.
However, Hilton’s international presence makes it vulnerable to lingering political uncertainties and economic downturns in certain parts of the world. We believe, unfavorable currency translations could also continue to hurt the top line.
Other Stocks that Warrant a Look
Hilton is not the only company looking up this earnings season. Here are some other companies to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
SeaWorld Entertainment, Inc. has an Earnings ESP of +9.43% and a Zacks Rank #3.
Red Lion Hotels Corporation has an Earnings ESP of +3.33% and a Zacks Rank #3.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trade>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Is a Beat in Store for Hilton (HLT) this Earning Season?
We expect Hilton Worldwide Holdings Inc. (HLT - Free Report) to beat expectations when it reports first-quarter 2017 numbers on May 2, before the opening bell.
Last quarter, this leading global hospitality company posted positive earnings surprise of 7.69%. In fact, the company outpaced/met earnings estimates in three of the trailing four-quarters with an average beat of 2.52%.
Let’s see how things are shaping up prior to this announcement.
Hilton Worldwide Holdings Inc. Price and EPS Surprise
Hilton Worldwide Holdings Inc. Price and EPS Surprise | Hilton Worldwide Holdings Inc. Quote
Why a Likely Positive Surprise?
Our proven model shows that Hilton is likely to beat earnings because it has the perfect combination of the two key ingredients.
Zacks ESP: Hilton Brands has an Earnings ESP of +10.71%. This is because the Most Accurate estimate is 31 cents, while the Zacks Consensus Estimate is pegged lower at 28 cents. A favorable Earnings ESP serves as a meaningful indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hilton currently carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates. Conversely, sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The combination of Restaurant Brands favorable Zacks Rank and positive Earnings ESP makes us reasonably confident of an earnings beat.
What is Driving Better-than-Expected Earnings?
Hilton witnessed growth in its system-wide revenue per available room (RevPAR) in the fourth quarter, primarily owing to better-than-expected transient demand. The company’s geographic exposure, solid transient business as well as improving group business trends are expected to have continued driving RevPAR in the to-be-reported quarter as well.
Notably, system-wide RevPAR growth is projected to be in the band of 1–3% in the first quarter of 2017. Further, adjusted earnings are anticipated to be between 24 cents and 29 cents, while adjusted EBITDA (Earnings before Interest, Tax, Depreciation, and Amortization) is expected in the band of $380 million to $400 million.
Moreover, the company expects first-quarter results to be buoyed by strong unit development and tremendous growth in loyalty program given its scale, size, industry-leading brands and commercial platform.
However, Hilton’s international presence makes it vulnerable to lingering political uncertainties and economic downturns in certain parts of the world. We believe, unfavorable currency translations could also continue to hurt the top line.
Other Stocks that Warrant a Look
Hilton is not the only company looking up this earnings season. Here are some other companies to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
La Quinta Holdings Inc. has an Earnings ESP of +50.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
SeaWorld Entertainment, Inc. has an Earnings ESP of +9.43% and a Zacks Rank #3.
Red Lion Hotels Corporation has an Earnings ESP of +3.33% and a Zacks Rank #3.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trade>>