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Hilton (HLT) Gears Up for Q4 Earnings: What's in Store?

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Hilton Worldwide Holdings Inc. (HLT - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 16, before the opening bell. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 2.5%.

Q4 Estimates

The Zacks Consensus Estimate for the fourth-quarter bottom line is pegged at 71 cents per share. In the prior-year quarter, the company had reported an adjusted loss per share of 10 cents. The consensus mark for revenues stands at $1.71 billion, suggesting growth of 91.9% from the prior-year quarter.

Factors to Note

Hilton’s fourth-quarter 2021 performance is likely to have benefited from the removal of authorized operational and capacity restrictions, an increase in travel, a gradual increase in demand, new hotel openings, hotel conversions and new project developments. The rise in leisure demand coupled with a rebound in corporate transient and group businesses might have aided the company’s performance in the quarter to be reported. Focus on enhanced partnerships and points' redemption offerings for its loyalty program — Hilton Honors — is likely to have contributed to the fourth-quarter performance.

The Zacks Consensus Estimate for revenues from Base and other management fees is pegged at $58 million, indicating growth of 87.1% from $31 million reported in the prior-year quarter. Incentive management fees are currently projected at $29.5 million, indicating growth of 126.9% from $13 million in the year-ago quarter. Revenues from Owned and leased hotels are estimated at $202 million, indicating an improvement of 134.9% from $202 million in the year-ago quarter. Other revenues from managed and franchised properties are anticipated at $979 million, up 93.5% year over year.

However, high operating and fixed costs stemming from the pandemic might have hurt margins in the to-be-reported quarter. Although RevPAR and occupancy rate are likely to have improved sequentially, it is likely to remain well below the pre-pandemic level.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Hilton 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. But that's not the case here.

Earnings ESP: Hilton has an Earnings ESP of -5.02%. 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.

Stocks Posed to Beat earnings

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 post an earnings beat:

Cedar Fair, L.P. (FUN - Free Report) has an Earnings ESP of +6.02% and a Zacks Rank #1.

Shares of Cedar Fair have gained 43.5% in the past year. FUN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 16.5%.

Oxford Industries, Inc. (OXM - Free Report) has an Earnings ESP of +1.86% and a Zacks Rank #2.

Shares of Oxford Industries have appreciated 15.9% in the past year. OXM’s earnings topped the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 96.7%.

PlayAGS, Inc. (AGS - Free Report) has an Earnings ESP of +5.66% and a Zacks Rank #2.

Shares of PlayAGS have surged 20.9% in the past year. AGS’ earnings beat the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 33.3%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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