Hyatt Hotels Corporation (H Quick QuoteH - Free Report) is scheduled to report second-quarter 2021 numbers on Aug 3, after the closing bell. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 168.4%.

Which Way are Estimates Headed?

The Zacks Consensus Estimate for second-quarter bottom line is pegged at a loss of 89 cents per share, indicating an improvement of 50.6% from a loss of $1.80 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at approximately $661.8 million, thereby suggesting a surge of 164.7% from the year-ago quarter’s reported figure.

Hyatt Hotels Corporation Price and EPS Surprise

 

Hyatt Hotels Corporation price-eps-surprise | Hyatt Hotels Corporation Quote

Let's take a look at how things have shaped up in the quarter.

Factors to Note

Hyatt’s second-quarter 2021 performance is likely to have benefitted from strong leisure transient demand as well as improving sentiment around group and business travel. Although bookings are likely to remain below pre-pandemic levels, sequential improvements are anticipated on the back of widening vaccine availability and easing of restrictions. This along with focus on initiatives such as franchise distribution, acquisition strategies and hotel reopenings is likely to have driven second-quarter top line.

Moreover, solid performance of Owned and leased hotels as well as managed and franchised business segment is likely to get reflected in the company’s second-quarter performance.  The Zacks Consensus Estimate for Owned and leased hotels revenues is currently at $153 million, indicating growth of 705.3% from $19 million in the year-ago quarter. The consensus mark for Management and franchise fees is pegged at $85 million, which indicates a surge of 608.3% from $12 million reported in the previous quarter.

Also, emphasis on unit growth (including newbuilds and conversions), cost-saving measures, loyalty programs and operational efficiencies are likely to have driven the company’s performance in the to-be-reported quarter.

Travel restrictions in certain parts of the world coupled with timing uncertainties with respect to hotel reopenings is likely to have impacted the pace of recovery in the second quarter. Although sequential improvements in RevPAR are likely, it is still anticipated to remain below the pre-pandemic levels in the to-be-reported quarter.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Hyatt this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: Hyatt has an Earnings ESP of +12.24%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks Poised to Beat Earnings Estimates

Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these also have the right combination of elements to post an earnings beat this quarter:

Golden Entertainment, Inc. (GDEN Quick QuoteGDEN - Free Report) , sports a Zacks Rank #1, and has an Earnings ESP of +5.22%.

Caesars Entertainment, Inc. (CZR Quick QuoteCZR - Free Report) , has a Zacks Rank #2, and an Earnings ESP of +160.55%.

MGM Resorts International (MGM Quick QuoteMGM - Free Report) , has a Zacks Rank #3, and an Earnings ESP of +51.54%.