Back to top

Image: Bigstock

Factors Setting the Tone for Hyatt's (H) Earnings in Q1

Read MoreHide Full Article

Hyatt Hotels Corporation (H - Free Report) is scheduled to report first-quarter 2022 results on May 10, 2022, before the opening bell. In the last reported quarter, the company reported a negative earnings surprise of 2,216.7%.

The Trend in Estimate Revision

The Zacks Consensus Estimate for the first-quarter bottom line is pegged at a loss of 41 cents per share, indicating an improvement of 88.5% from a loss of $3.57 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at approximately $1,098 million, suggesting a surge of 150.7% from the year-ago quarter’s reported figure.

Hyatt Hotels Corporation Price and EPS Surprise

 

Hyatt Hotels Corporation Price and EPS Surprise

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

 

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

Factors to Note

Hyatt’s first-quarter 2022 performance is likely to have benefited from a gradual increase in demand, new hotel openings, a loyalty program and strong booking trends. Emphasis on integrating new growth platforms (through the Apple Leisure Group acquisition) is likely to have driven the first-quarter top line. During the previous quarter’s earnings call, the company stated that the net package RevPAR for comparable ALG resorts in the Americas was 85% of 2019 levels. Also, it stated that gross package revenue booked for future periods increased from approximately 93% (of 2019 levels) in January to more than 135% (of 2019 levels) through mid-February. Given the growing leisure demand and increased airlift capacity, the momentum is likely to have continued in the first quarter.

The solid performance of Owned and leased hotels as well as managed and the franchised business segment is likely to have driven the top line in the first quarter. The Zacks Consensus Estimate for Owned and leased hotels revenues is currently pegged at $277 million, indicating growth of 166.3% from $104 million reported in the year-ago quarter. The consensus mark for Management and franchise fees is pegged at $140 million, indicating a surge of 122.2% from $63 million reported in the previous quarter.

The negative influence of the omicron variant on hotel bookings and supply chain issues are likely to have hurt the company’s operations in the first 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 does not conclusively predict an earnings beat for Hyatt this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) to beat earnings. But that's not the case here.

Earnings ESP: Hyatt has an Earnings ESP of -2.13%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries 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.

Planet Fitness, Inc. (PLNT - Free Report) has an Earnings ESP of +22.68% and a Zacks Rank #2.

Shares of Planet Fitness have declined 4.3% in the past year. PLNT’s earnings surpassed the consensus mark once in the trailing four quarters, matched once and missed twice, the average surprise being 0.3%.

The Walt Disney Company (DIS - Free Report) has an Earnings ESP of +3.87% and a Zacks Rank #3.

Shares of Disney have declined 40.1% in the past year. DIS’ earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 67.8%.

Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +2.87% and a Zacks Rank #3.

Shares of Choice Hotels have gained 14.5% in the past year. CHH’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 15.3%.

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