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Hilton (HLT) Q4 Earnings & Revenues Miss Estimates, Fall Y/Y
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Hilton Worldwide Holdings Inc. (HLT - Free Report) reported dismal fourth-quarter 2020 results, with earnings and revenues missing the Zacks Consensus Estimate as well as declining on a year-over-year basis. Notably, the company’s operations were negatively impacted by strict travel restrictions stemming from rise in COVID-19 cases. Following the results, the company’s shares dropped 1.9% in pre-market trading session on Feb 17.
Q4 in Detail
In the quarter under review, Hilton’s adjusted loss per share was 10 cents, wider than the Zacks Consensus Estimate of earnings of 4 cents. In the prior-year quarter, the company reported adjusted earnings per share (EPS) of $1.00.
Quarterly revenues of $890 million missed the consensus mark of $1,057 million. Moreover, the top line declined 62.4% from the year-ago quarter’s levels. Both the top and the bottom line were negatively impacted by the coronavirus pandemic.
Hilton Worldwide Holdings Inc. Price, Consensus and EPS Surprise
In the quarter under review, system-wide comparable revenue per available room (RevPAR) slumped 59.2% on a currency-neutral basis due to decline in occupancy and average daily rate (ADR). The downtrend was caused by re-imposed travel restrictions and re-suspensions of hotel operations (particularly in Europe), owing to rise in COVID-19 cases.
During the quarter under review, management fee and franchise and licensing fee revenues were down 50% on a year-over-year basis. The downside was due to complete (or partial) hotel operation suspensions owing to the global pandemic. Markedly, this affected nearly 20% of its global hotel properties.
Meanwhile, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) during the fourth quarter came in at $204 million compared with $586 million in the prior-year quarter.
Cash, Debt and Share Repurchase
As of Dec 31, 2020, cash and cash equivalent balance (inclusive of restricted cash) amounted to $3,263 million. The company had $10.6 billion of long-term debt outstanding, excluding deferred financing costs and discount, with a weighted average interest rate of 3.77%.
Following the suspension of share repurchase program and dividend payouts in March, no transactions were made during the fourth quarter (ended Dec 31, 2020). Notably, the company has $2.2 billion under its stock repurchase program.
2020 Highlights
Total revenues in 2020 came in at $4,307 million compared with $9,452 million in 2019.
Adjusted EBITDA in 2020 came in at $842 million compared with $2,308 million in 2019.
In 2020, adjusted diluted EPS came in at 10 cents compared with $3.90 in the previous year.
Business Updates
Notably, Hilton opened 154 new hotels in fourth-quarter 2020. It also achieved net unit growth of nearly 20,900 rooms. During the quarter, the company marked the 300th hotel opening in China with the launch of Waldorf Astoria Xiamen. It also boosted its luxury portfolio with the opening of the Waldorf Astoria Monarch Beach Resort & Club.
As of Dec 31, 2020, Hilton's development pipeline comprised more than 2,570 hotels, with nearly 397,000 rooms across 116 countries and territories — including 31 countries and territories where it currently does not have any running hotels. Moreover, 233,000 rooms in the development pipeline were located outside the United States and 204,000 rooms were under construction.
As of Feb 10, 2021, 97% of Hilton's global hotel properties were open, while nearly 220 hotels had temporarily suspended operations.
Hilton, which shares space with Marriott International, Inc. (MAR - Free Report) , Choice Hotels International (CHH - Free Report) and Hyatt Hotels Corporation (H - Free Report) , currently has a Zacks Rank #4 (Sell).
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Hilton (HLT) Q4 Earnings & Revenues Miss Estimates, Fall Y/Y
Hilton Worldwide Holdings Inc. (HLT - Free Report) reported dismal fourth-quarter 2020 results, with earnings and revenues missing the Zacks Consensus Estimate as well as declining on a year-over-year basis. Notably, the company’s operations were negatively impacted by strict travel restrictions stemming from rise in COVID-19 cases. Following the results, the company’s shares dropped 1.9% in pre-market trading session on Feb 17.
Q4 in Detail
In the quarter under review, Hilton’s adjusted loss per share was 10 cents, wider than the Zacks Consensus Estimate of earnings of 4 cents. In the prior-year quarter, the company reported adjusted earnings per share (EPS) of $1.00.
Quarterly revenues of $890 million missed the consensus mark of $1,057 million. Moreover, the top line declined 62.4% from the year-ago quarter’s levels. Both the top and the bottom line were negatively impacted by the coronavirus pandemic.
Hilton Worldwide Holdings Inc. Price, Consensus and EPS Surprise
Hilton Worldwide Holdings Inc. price-consensus-eps-surprise-chart | Hilton Worldwide Holdings Inc. Quote
RevPAR and Adjusted EBITDA
In the quarter under review, system-wide comparable revenue per available room (RevPAR) slumped 59.2% on a currency-neutral basis due to decline in occupancy and average daily rate (ADR). The downtrend was caused by re-imposed travel restrictions and re-suspensions of hotel operations (particularly in Europe), owing to rise in COVID-19 cases.
During the quarter under review, management fee and franchise and licensing fee revenues were down 50% on a year-over-year basis. The downside was due to complete (or partial) hotel operation suspensions owing to the global pandemic. Markedly, this affected nearly 20% of its global hotel properties.
Meanwhile, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) during the fourth quarter came in at $204 million compared with $586 million in the prior-year quarter.
Cash, Debt and Share Repurchase
As of Dec 31, 2020, cash and cash equivalent balance (inclusive of restricted cash) amounted to $3,263 million. The company had $10.6 billion of long-term debt outstanding, excluding deferred financing costs and discount, with a weighted average interest rate of 3.77%.
Following the suspension of share repurchase program and dividend payouts in March, no transactions were made during the fourth quarter (ended Dec 31, 2020). Notably, the company has $2.2 billion under its stock repurchase program.
2020 Highlights
Total revenues in 2020 came in at $4,307 million compared with $9,452 million in 2019.
Adjusted EBITDA in 2020 came in at $842 million compared with $2,308 million in 2019.
In 2020, adjusted diluted EPS came in at 10 cents compared with $3.90 in the previous year.
Business Updates
Notably, Hilton opened 154 new hotels in fourth-quarter 2020. It also achieved net unit growth of nearly 20,900 rooms. During the quarter, the company marked the 300th hotel opening in China with the launch of Waldorf Astoria Xiamen. It also boosted its luxury portfolio with the opening of the Waldorf Astoria Monarch Beach Resort & Club.
As of Dec 31, 2020, Hilton's development pipeline comprised more than 2,570 hotels, with nearly 397,000 rooms across 116 countries and territories — including 31 countries and territories where it currently does not have any running hotels. Moreover, 233,000 rooms in the development pipeline were located outside the United States and 204,000 rooms were under construction.
As of Feb 10, 2021, 97% of Hilton's global hotel properties were open, while nearly 220 hotels had temporarily suspended operations.
Hilton, which shares space with Marriott International, Inc. (MAR - Free Report) , Choice Hotels International (CHH - Free Report) and Hyatt Hotels Corporation (H - Free Report) , currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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