With all eyes on the Q2 earnings season, let’s take a look at how the hotel stocks are expected to fare.
We note that the first quarter was more or less a good one for hotel companies. Rise in business and leisure travel, favorable supply and demand balances and solid lodging fundamentals drove the results, despite the turmoil in international markets.
Though increasing travel demand and higher transaction volumes are expected to boost the Q2 results, decline in occupancy levels, negative currency translation and pockets of geopolitical instability and economic slowdown might dent profits.
Three hotel companies are set to report their second-quarter numbers on Jul 27. Will these companies manage to put up a decent performance? Let’s take a look at what might be in store for them this quarter:
Hilton Worldwide Holdings Inc. (HLT - Free Report) posted a positive earnings surprise of 6.25% last quarter. However, the trailing four-quarter average earnings surprise stands at a negative 1.85%.
For the second quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter’s earnings is pegged at 26 cents.
The company saw strong U.S. revenue per available room (RevPAR) in first-quarter 2016 and we expect the trend to continue in the to-be-reported quarter. However, lingering political uncertainty and economic downturns in international markets might limit top-line growth (read more: Hilton Worldwide Q2 Earnings: Surprise in Store?).
Marriott International, Inc. (MAR - Free Report) registered a 3.57% positive earnings surprise in the previous quarter. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in all of the last four quarters, with an average beat of 2.88%
The company has an Earnings ESP of -1.02% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the quarter’s earnings is pegged at 98 cents.
For the second quarter, Marriott expects earnings per share in the range of 96 cents to $1.00, up from the year-ago level of 82 cents. However, lingering global uncertainties, competition in domestic market coupled with negative currency translation is likely to hurt top-line growth (read more: Will Marriott Let Down Investors this Earnings Season?).
Wyndham Worldwide Corporation recorded a positive earnings surprise of 0.90% in the preceding quarter. In fact, the company posted positive earnings surprises in three of the past four quarters, with an average beat of 1.93%.
The company has an Earnings ESP of 0.00% and a Zacks Rank #4. The Zacks Consensus Estimate for the quarter is pegged at $1.36 per share.
Despite various sales and marketing initiatives, negative currency translation and uncertainty in international markets are likely to mar the company’s revenues in Q2 (read more: Wyndham Q2 Earnings: Disappointment in the Cards?).
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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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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With all eyes on the Q2 earnings season, let’s take a look at how the hotel stocks are expected to fare.
We note that the first quarter was more or less a good one for hotel companies. Rise in business and leisure travel, favorable supply and demand balances and solid lodging fundamentals drove the results, despite the turmoil in international markets.
Though increasing travel demand and higher transaction volumes are expected to boost the Q2 results, decline in occupancy levels, negative currency translation and pockets of geopolitical instability and economic slowdown might dent profits.
Three hotel companies are set to report their second-quarter numbers on Jul 27. Will these companies manage to put up a decent performance? Let’s take a look at what might be in store for them this quarter:
Hilton Worldwide Holdings Inc. (HLT - Free Report) posted a positive earnings surprise of 6.25% last quarter. However, the trailing four-quarter average earnings surprise stands at a negative 1.85%.
For the second quarter, the company has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for the quarter’s earnings is pegged at 26 cents.
The company saw strong U.S. revenue per available room (RevPAR) in first-quarter 2016 and we expect the trend to continue in the to-be-reported quarter. However, lingering political uncertainty and economic downturns in international markets might limit top-line growth (read more: Hilton Worldwide Q2 Earnings: Surprise in Store?).
Marriott International, Inc. (MAR - Free Report) registered a 3.57% positive earnings surprise in the previous quarter. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in all of the last four quarters, with an average beat of 2.88%
The company has an Earnings ESP of -1.02% and a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for the quarter’s earnings is pegged at 98 cents.
For the second quarter, Marriott expects earnings per share in the range of 96 cents to $1.00, up from the year-ago level of 82 cents. However, lingering global uncertainties, competition in domestic market coupled with negative currency translation is likely to hurt top-line growth (read more: Will Marriott Let Down Investors this Earnings Season?).
Wyndham Worldwide Corporation recorded a positive earnings surprise of 0.90% in the preceding quarter. In fact, the company posted positive earnings surprises in three of the past four quarters, with an average beat of 1.93%.
The company has an Earnings ESP of 0.00% and a Zacks Rank #4. The Zacks Consensus Estimate for the quarter is pegged at $1.36 per share.
Despite various sales and marketing initiatives, negative currency translation and uncertainty in international markets are likely to mar the company’s revenues in Q2 (read more: Wyndham Q2 Earnings: Disappointment in the Cards?).
Don’t miss out on our full earnings release articles for these stocks, as the actual results might hold some surprises!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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