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Factors Setting the Tone for Hyatt's (H) Earnings in Q3
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Hyatt Hotels Corporation (H - Free Report) is scheduled to report third-quarter 2021 numbers on Nov 3, after the closing bell. In the previous quarter, the company reported a negative earnings surprise of 29.2%.
Which Way are Estimates Headed?
The Zacks Consensus Estimate for third-quarter bottom line is pegged at a loss of 39 cents per share, indicating an improvement of 73.7% from a loss of $1.48 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at approximately $860.3 million, thereby suggesting a surge of 115.6% from the year-ago quarter’s reported figure.
Let's take a look at how things have shaped up in the quarter.
Factors to Note
Hyatt’s third-quarter 2021 performance is likely to have benefitted from a gradual increase in demand, cost-saving measures, loyalty programs and operational efficiencies. Although bookings are likely to trail pre-pandemic levels, widespread vaccinations and easing of travel restrictions are likely to have aided the company’s performance in the third quarter. This along with emphasis on the leisure-driven portfolio (comprising of newbuilds and conversions) is likely to have driven the third-quarter top line.
Solid performance of Owned and leased hotels as well as managed and franchised business segment is likely to get reflected in the company’s third-quarter performance. The Zacks Consensus Estimate for Owned and leased hotels revenues is currently pegged at $277 million, indicating growth of 246.3% from $80 million in the year-ago quarter. The consensus mark for Management and franchise fees is pegged at $107 million, which indicates a surge of 105.8% from $52 million reported in the previous quarter.
However, high operating and fixed costs stemming from the pandemic as well as labor constraints are likely to have negatively impacted the company’s performance in the third 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 +0.18%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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 - Free Report) currently sports a Zacks Rank #1 and has an Earnings ESP of +18.44%.
Accel Entertainment, Inc. (ACEL - Free Report) has a Zacks Rank #2 and an Earnings ESP of +20.00% at present.
Choice Hotels International, Inc. (CHH - Free Report) currently has a Zacks Rank #2 and an Earnings ESP of +6.44%.
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Factors Setting the Tone for Hyatt's (H) Earnings in Q3
Hyatt Hotels Corporation (H - Free Report) is scheduled to report third-quarter 2021 numbers on Nov 3, after the closing bell. In the previous quarter, the company reported a negative earnings surprise of 29.2%.
Which Way are Estimates Headed?
The Zacks Consensus Estimate for third-quarter bottom line is pegged at a loss of 39 cents per share, indicating an improvement of 73.7% from a loss of $1.48 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at approximately $860.3 million, thereby suggesting a surge of 115.6% 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 third-quarter 2021 performance is likely to have benefitted from a gradual increase in demand, cost-saving measures, loyalty programs and operational efficiencies. Although bookings are likely to trail pre-pandemic levels, widespread vaccinations and easing of travel restrictions are likely to have aided the company’s performance in the third quarter. This along with emphasis on the leisure-driven portfolio (comprising of newbuilds and conversions) is likely to have driven the third-quarter top line.
Solid performance of Owned and leased hotels as well as managed and franchised business segment is likely to get reflected in the company’s third-quarter performance. The Zacks Consensus Estimate for Owned and leased hotels revenues is currently pegged at $277 million, indicating growth of 246.3% from $80 million in the year-ago quarter. The consensus mark for Management and franchise fees is pegged at $107 million, which indicates a surge of 105.8% from $52 million reported in the previous quarter.
However, high operating and fixed costs stemming from the pandemic as well as labor constraints are likely to have negatively impacted the company’s performance in the third 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 +0.18%. 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 - Free Report) currently sports a Zacks Rank #1 and has an Earnings ESP of +18.44%.
Accel Entertainment, Inc. (ACEL - Free Report) has a Zacks Rank #2 and an Earnings ESP of +20.00% at present.
Choice Hotels International, Inc. (CHH - Free Report) currently has a Zacks Rank #2 and an Earnings ESP of +6.44%.