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What's in Store for Hyatt Hotels (H) This Earnings Season?
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Hyatt Hotels Corporation (H - Free Report) is scheduled to report first-quarter 2018 numbers on May 2, after market close. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 21.1%. Also, it outpaced earnings estimates in each of the trailing four quarters, with an average beat of 81.7%.
What to Expect?
The Zacks Consensus Estimate for the quarter under review is pegged at 29 cents, sharply down 60.3% from the prior-year quarter. In the past seven days, the company’s earnings have witnessed downward revisions, reflecting analysts’ concern surrounding the stock. Moreover, analysts polled by Zacks expect revenues of nearly $1,135 million, down 4.4% from the prior-year quarter.
Let’s take a look at how the company’s top and bottom line will shape up in the to-be-reported quarter.
Factors at Play
On the earnings front, Hyatt Hotels expects the first quarter of 2018 to be the weakest one. The company, which is likely to witness $67 million transaction impact in 2018, will incur nearly $38 million in the quarter under review. Moreover, comparable owned and leased margin contraction is expected to impact the company’s bottom line. The Zacks Consensus estimate for owned and leased revenues is pegged at $502 million, down more than 12% year over year.
Moreover, since the company’s operations outside the United States represent approximately 20% of net revenues in 2017, the costs of complying with laws, regulations and policies (including taxation policies) of foreign governments relating to investments and operations might affect the company’s profitability.
Nevertheless, Hyatt Hotels continues to gain market share globally on its solid brand portfolio and innovative and exceptional personalized service to guests. Furthermore, we expect its strong developmental pipeline, consistent expansion plans and extensive international exposure to drive growth. The company’s remodeled loyalty program and innovative offerings should also boost occupancy. Additionally, its increased focus on expanding presence in the fast-growing select service category bode well.
Notably, the company’s hotel opening agreements have continually outpaced actual openings, courtesy of aggressive expansion efforts. This trend is expected to continue in the near future as well. Also, Hyatt Hotels has experienced net room growth in the past quarters and expects to continue the momentum in 2018.
Hyatt Hotels Corporation Price, Consensus and EPS Surprise
Our proven model does not show that Hyatt Hotels is likely to beat earnings estimates this quarter. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hyatt Hotels has an Earnings ESP of -3.30%. Although, the company’s Zacks Rank #3 increases the predictive power of ESP, we need to have a positive ESP to be confident about an earnings surprise.
Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few other stocks from the Restaurant space that investors may consider, as our model shows that they also have the right combination of elements to post an earnings beat this quarter:
Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank of 3.
Brinker International, Inc. (EAT - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
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What's in Store for Hyatt Hotels (H) This Earnings Season?
Hyatt Hotels Corporation (H - Free Report) is scheduled to report first-quarter 2018 numbers on May 2, after market close. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 21.1%. Also, it outpaced earnings estimates in each of the trailing four quarters, with an average beat of 81.7%.
What to Expect?
The Zacks Consensus Estimate for the quarter under review is pegged at 29 cents, sharply down 60.3% from the prior-year quarter. In the past seven days, the company’s earnings have witnessed downward revisions, reflecting analysts’ concern surrounding the stock. Moreover, analysts polled by Zacks expect revenues of nearly $1,135 million, down 4.4% from the prior-year quarter.
Let’s take a look at how the company’s top and bottom line will shape up in the to-be-reported quarter.
Factors at Play
On the earnings front, Hyatt Hotels expects the first quarter of 2018 to be the weakest one. The company, which is likely to witness $67 million transaction impact in 2018, will incur nearly $38 million in the quarter under review. Moreover, comparable owned and leased margin contraction is expected to impact the company’s bottom line. The Zacks Consensus estimate for owned and leased revenues is pegged at $502 million, down more than 12% year over year.
Moreover, since the company’s operations outside the United States represent approximately 20% of net revenues in 2017, the costs of complying with laws, regulations and policies (including taxation policies) of foreign governments relating to investments and operations might affect the company’s profitability.
Nevertheless, Hyatt Hotels continues to gain market share globally on its solid brand portfolio and innovative and exceptional personalized service to guests. Furthermore, we expect its strong developmental pipeline, consistent expansion plans and extensive international exposure to drive growth. The company’s remodeled loyalty program and innovative offerings should also boost occupancy. Additionally, its increased focus on expanding presence in the fast-growing select service category bode well.
Notably, the company’s hotel opening agreements have continually outpaced actual openings, courtesy of aggressive expansion efforts. This trend is expected to continue in the near future as well. Also, Hyatt Hotels has experienced net room growth in the past quarters and expects to continue the momentum in 2018.
Hyatt Hotels Corporation Price, Consensus and EPS Surprise
Hyatt Hotels Corporation Price, Consensus and EPS Surprise | Hyatt Hotels Corporation Quote
What Does the Zacks Model Unveil?
Our proven model does not show that Hyatt Hotels is likely to beat earnings estimates this quarter. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hyatt Hotels has an Earnings ESP of -3.30%. Although, the company’s Zacks Rank #3 increases the predictive power of ESP, we need to have a positive ESP to be confident about an earnings surprise.
Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few other stocks from the Restaurant space that investors may consider, as our model shows that they also have the right combination of elements to post an earnings beat this quarter:
Ruth's Hospitality Group, Inc. has an Earnings ESP of +1.70% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank of 3.
Brinker International, Inc. (EAT - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>