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Hyatt (H) Gears Up for Q2 Earnings: What to Expect?

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Hyatt Hotels Corporation (H - Free Report) is scheduled to report its second-quarter 2022 results on Aug 9, 2022, before the opening bell. In the last reported quarter, the company reported a positive earnings surprise of 19.5%.

The Trend in Estimate Revision

The Zacks Consensus Estimate for the second-quarter bottom line is pegged at a loss of 1 cent per share, indicating an improvement of 99.3% from a loss of $1.15 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at approximately $1.36 billion, suggesting a surge of 105.6% from the year-ago quarter’s reported figure.

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

Factors to Note

Hyatt’s second-quarter 2022 performance is likely to have benefited from a gradual increase in demand, new hotel openings, a loyalty program and strong booking trends. Meanwhile, sequential improvements in group travel and business transient demand are likely to have aided the company’s performance.

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 second quarter. The Zacks Consensus Estimate for Owned and leased hotels revenues is currently pegged at $338 million, indicating growth of 77% from $191 million reported in the year-ago quarter. The consensus mark for Management and franchise fees is pegged at $183 million, indicating a surge of 96.8% from $93 million reported in the previous quarter.

However, high costs are likely to have negatively impacted the company’s bottom line. Although sequential improvements in RevPAR are likely, it is still anticipated to remain below the pre-pandemic levels in the to-be-reported quarter.

Hyatt Hotels Corporation Price and EPS Surprise Hyatt Hotels Corporation Price and EPS Surprise

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

What the Zacks Model Unveils

Our proven model conclusively predicts 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.

Earnings ESP: Hyatt has an Earnings ESP of +216.67%. 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.

Other 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 too have the right combination of elements to post an earnings beat:

Reynolds Consumer Products Inc. (REYN - Free Report) has an Earnings ESP of +1.30% and a Zacks Rank #3.

Shares of Reynolds Consumer Products have gained 2.9% in the past year. REYN’s earnings surpassed the consensus mark in all the trailing four quarters, the average being 4.8%.

Malibu Boats, Inc. (MBUU - Free Report) has an Earnings ESP of +3.78% and a Zacks Rank of 3.

Shares of Malibu Boats have declined 22.9% in the past year. MBUU’s earnings surpassed the consensus mark in all the trailing four quarters, the average being 16.1%.

Dolby Laboratories, Inc. (DLB - Free Report) has an Earnings ESP of +5.00% and a Zacks Rank #3.

Shares of Dolby Laboratories have declined 20% in the past year. DLB’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 14.7%.

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

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