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Hilton (HLT) to Report Q1 Earnings: What's in the Cards?
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Hilton Worldwide Holdings Inc. (HLT - Free Report) is scheduled to report first-quarter 2022 results on May 3, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 1.4%.
How are Estimates Faring?
The Zacks Consensus Estimate for first-quarter bottom line is pegged at 59 cents per share, indicating an improvement of 2,850% from 2 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $1,586 million, suggesting growth of 81.4% from the prior-year quarter’s figure.
Hilton Worldwide Holdings Inc. Price and EPS Surprise
Let's take a look at how things have shaped up in the quarter.
Factors at Play
Hilton’s first-quarter performance is likely to have benefited from a gradual increase in demand, loyalty program and unit expansion efforts. With Omicron-related disruption largely contained, Hilton’s business is likely to have picked up on strong leisure demand combined with improving business transient trends. This along with the recovery of international inbound travel is likely to have aided the company’s performance in the first quarter. Emphasis on an asset-light business model coupled with streamlining operations is likely to have driven margins in the to-be-reported quarter.
Strong contributions across the company’s Base and other management fees, Incentive management fees and Owned and leased hotels are likely to get reflected in the first-quarter top line. The Zacks Consensus Estimate for revenues from Base and other management fees is pegged at $58 million, indicating growth of 132% from $25 million reported in the prior-year quarter. Incentive management fees are currently projected at $33 million, indicating growth of 153.8% from $13 million in the year-ago quarter. Revenues from Owned and leased hotels are estimated at $154 million, suggesting a rise of 175% from $56 million in the year-ago quarter.
However, high operating and fixed costs stemming from the pandemic are likely to have hurt margins in the to-be-reported quarter. Although RevPAR is likely to have improved sequentially, it is likely to remain well below the pre-pandemic level.
What Our Model Says
Our proven model predicts 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.
Earnings ESP: Hilton has an Earnings ESP of +5.62%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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.
Golden Entertainment, Inc. (GDEN - Free Report) has an Earnings ESP of +7.72% and a Zacks Rank #2.
Shares of Golden Entertainment have gained 45.9% in the past year. GDEN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 204.7%.
Callaway Golf Company has an Earnings ESP of +7.22% and a Zacks Rank #3.
Shares of Callaway have declined 24% in the past year. ELY’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 1,047.2%.
Penn National Gaming, Inc. (PENN - Free Report) has an Earnings ESP of +9.50% and a Zacks Rank #3.
Shares of Penn National have declined 16.9% in the past three months. PENN’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 6.9%.
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Hilton (HLT) to Report Q1 Earnings: What's in the Cards?
Hilton Worldwide Holdings Inc. (HLT - Free Report) is scheduled to report first-quarter 2022 results on May 3, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 1.4%.
How are Estimates Faring?
The Zacks Consensus Estimate for first-quarter bottom line is pegged at 59 cents per share, indicating an improvement of 2,850% from 2 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $1,586 million, suggesting growth of 81.4% from the prior-year quarter’s figure.
Hilton Worldwide Holdings Inc. Price and EPS Surprise
Hilton Worldwide Holdings Inc. price-eps-surprise | Hilton Worldwide Holdings Inc. Quote
Let's take a look at how things have shaped up in the quarter.
Factors at Play
Hilton’s first-quarter performance is likely to have benefited from a gradual increase in demand, loyalty program and unit expansion efforts. With Omicron-related disruption largely contained, Hilton’s business is likely to have picked up on strong leisure demand combined with improving business transient trends. This along with the recovery of international inbound travel is likely to have aided the company’s performance in the first quarter. Emphasis on an asset-light business model coupled with streamlining operations is likely to have driven margins in the to-be-reported quarter.
Strong contributions across the company’s Base and other management fees, Incentive management fees and Owned and leased hotels are likely to get reflected in the first-quarter top line. The Zacks Consensus Estimate for revenues from Base and other management fees is pegged at $58 million, indicating growth of 132% from $25 million reported in the prior-year quarter. Incentive management fees are currently projected at $33 million, indicating growth of 153.8% from $13 million in the year-ago quarter. Revenues from Owned and leased hotels are estimated at $154 million, suggesting a rise of 175% from $56 million in the year-ago quarter.
However, high operating and fixed costs stemming from the pandemic are likely to have hurt margins in the to-be-reported quarter. Although RevPAR is likely to have improved sequentially, it is likely to remain well below the pre-pandemic level.
What Our Model Says
Our proven model predicts 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.
Earnings ESP: Hilton has an Earnings ESP of +5.62%. 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 Poised to Beat Earnings Estimates
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.
Golden Entertainment, Inc. (GDEN - Free Report) has an Earnings ESP of +7.72% and a Zacks Rank #2.
Shares of Golden Entertainment have gained 45.9% in the past year. GDEN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 204.7%.
Callaway Golf Company has an Earnings ESP of +7.22% and a Zacks Rank #3.
Shares of Callaway have declined 24% in the past year. ELY’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 1,047.2%.
Penn National Gaming, Inc. (PENN - Free Report) has an Earnings ESP of +9.50% and a Zacks Rank #3.
Shares of Penn National have declined 16.9% in the past three months. PENN’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 6.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.