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Hilton (HLT) to Report Q3 Earnings: What's in the Offing?
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Hilton Worldwide Holdings Inc. (HLT - Free Report) is scheduled to report third-quarter 2020 results on Nov 4, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 79.4%.
Q3 Estimates
The Zacks Consensus Estimate for third-quarter bottom line is pegged at a loss of 9 cents. Notably, it reported an earnings of $1.05 in the prior-year quarter. The company’s earnings estimates have witnessed downward revisions over the past 60 days, reflecting analyst concern regarding the stock.
For revenues, the consensus mark stands at $929.3 million, suggesting a decline of 61.2% from the year-ago quarter.
Factors to Note
Hilton’s third-quarter results are likely to reflect the impact of the coronavirus pandemic. Although occupancy rates are improving it is still well below the pre-pandemic level. With restrictions being lifted and properties reopening across the globe, Hilton’s business is likely to pick up on improved demand post the summer period. Notably, high operating costs stemming from the pandemic might have weighed on the to-be-reported quarter’s performance. Notably, the Zacks Consensus Estimate for RevPAR is currently pegged at $48.2 million, indicating a decline of 58.1% from $115 million reported in the previous quarter.
Moreover, dismal performance across the company’s Franchise and licensing fees, Incentive management fees, and Base and other management fees is likely to get reflected in the third-quarter top line.
The consensus mark for Franchise and licensing fees stands at $187 million, indicating a decline of 57.8% from $443 million reported in the previous quarter. The consensus estimates for Base and other management fees are pegged at $24.8 million, suggesting a fall of 69% from $80 million in the year-ago quarter.
Nonetheless, increased focus on unit expansion strategies, loyalty program and asset-light business model might have benefited the company’s performance in the quarter to be reported.
Hilton Worldwide Holdings Inc. Price and EPS Surprise
Our proven model does not conclusively predict an earnings beat for Hilton 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 estimates. But that's not the case here.
Earnings ESP: Hilton has an Earnings ESP of -20.46%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hilton carries a Zacks Rank #4 (Sell).
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 deliver an earnings beat this time around.
Electronic Arts Inc. (EA - Free Report) has an Earnings ESP of +211.11% and a Zacks Rank #3.
Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +6.19% and a Zacks Rank #3.
Planet Fitness, Inc. (PLNT - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 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.
Image: Bigstock
Hilton (HLT) to Report Q3 Earnings: What's in the Offing?
Hilton Worldwide Holdings Inc. (HLT - Free Report) is scheduled to report third-quarter 2020 results on Nov 4, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 79.4%.
Q3 Estimates
The Zacks Consensus Estimate for third-quarter bottom line is pegged at a loss of 9 cents. Notably, it reported an earnings of $1.05 in the prior-year quarter. The company’s earnings estimates have witnessed downward revisions over the past 60 days, reflecting analyst concern regarding the stock.
For revenues, the consensus mark stands at $929.3 million, suggesting a decline of 61.2% from the year-ago quarter.
Factors to Note
Hilton’s third-quarter results are likely to reflect the impact of the coronavirus pandemic. Although occupancy rates are improving it is still well below the pre-pandemic level. With restrictions being lifted and properties reopening across the globe, Hilton’s business is likely to pick up on improved demand post the summer period. Notably, high operating costs stemming from the pandemic might have weighed on the to-be-reported quarter’s performance. Notably, the Zacks Consensus Estimate for RevPAR is currently pegged at $48.2 million, indicating a decline of 58.1% from $115 million reported in the previous quarter.
Moreover, dismal performance across the company’s Franchise and licensing fees, Incentive management fees, and Base and other management fees is likely to get reflected in the third-quarter top line.
The consensus mark for Franchise and licensing fees stands at $187 million, indicating a decline of 57.8% from $443 million reported in the previous quarter. The consensus estimates for Base and other management fees are pegged at $24.8 million, suggesting a fall of 69% from $80 million in the year-ago quarter.
Nonetheless, increased focus on unit expansion strategies, loyalty program and asset-light business model might have benefited the company’s performance in the quarter to be reported.
Hilton Worldwide Holdings Inc. Price and EPS Surprise
Hilton Worldwide Holdings Inc. price-eps-surprise | Hilton Worldwide Holdings Inc. Quote
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Hilton 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 estimates. But that's not the case here.
Earnings ESP: Hilton has an Earnings ESP of -20.46%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Hilton carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With Favorable Combination
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 deliver an earnings beat this time around.
Electronic Arts Inc. (EA - Free Report) has an Earnings ESP of +211.11% and a Zacks Rank #3.
Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +6.19% and a Zacks Rank #3.
Planet Fitness, Inc. (PLNT - Free Report) has an Earnings ESP of +7.14% and a Zacks Rank #3.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 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 >>