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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 2022 results on Nov 3, 2022, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 4,700.00%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter earnings is pegged at 31 cents per share, indicating a fall of 86.6% from $2.31 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at approximately $1,490 million, suggesting a surge of 75.1% 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 third-quarter 2022 performance is likely to have benefited from strong summer leisure travel and group demand. During the previous quarter’s earnings call, the company reported solid transient bookings with comparable transient revenues (for August) at approximately 1% higher than 2019 levels. It reported strong short-term demand for the group, with bookings at approximately 40% above 2019 levels for its Americas full-service managed property. Also, it witnessed a solid recovery in the Asia Pacific region. Given the continued ease-of-travel restrictions and improvement in airlines, the momentum is likely to have continued in the third quarter.
Emphasis on the integration of new growth platforms (through the Apple Leisure Group acquisition), improved airlift for key Americas destinations and a favorable pricing environment are likely to have aided the company’s performance in the to-be-reported quarter.
The solid performance of Owned and leased hotels as well as managed and franchised business segment is likely to have driven the top line in the third quarter. The Zacks Consensus Estimate for Owned and leased hotels revenues is currently pegged at $347 million, indicating growth of 31.9% from $263 million reported in the year-ago quarter. The consensus mark for Management and franchise fees is pegged at $191 million, indicating a surge of 69% from $113 million reported in the previous quarter.
However, supply chain issues and COVID-related restrictions (in certain markets) are likely to have hurt the company’s operations in the third quarter. Although revenue per available room (RevPAR) is likely to have increased sequentially, it is expected to have remained below pre-pandemic levels.
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 0.00%. 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 sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Crocs, Inc. (CROX - Free Report) has an Earnings ESP of +1.48% and a Zacks Rank #1.
Shares of Crocs have declined 57.9% in the past year. CROX’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 21.9%.
RCI Hospitality Holdings, Inc. (RICK - Free Report) has an Earnings ESP of +4.15% and a Zacks Rank #2.
Shares of RCI Hospitality have increased 21.8% in the past year. RICK’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 39.4%.
Cedar Fair, L.P. (FUN - Free Report) has an Earnings ESP of +2.38% and a Zacks Rank #3.
Shares of Cedar Fair have declined 12.3% in the past year. FUN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 5.3%.
Image: Bigstock
Factors Setting the Tone for Hyatt's (H) Earnings in Q3
Hyatt Hotels Corporation (H - Free Report) is scheduled to report third-quarter 2022 results on Nov 3, 2022, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 4,700.00%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter earnings is pegged at 31 cents per share, indicating a fall of 86.6% from $2.31 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at approximately $1,490 million, suggesting a surge of 75.1% 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 look at how things have shaped up in the quarter.
Factors to Note
Hyatt’s third-quarter 2022 performance is likely to have benefited from strong summer leisure travel and group demand. During the previous quarter’s earnings call, the company reported solid transient bookings with comparable transient revenues (for August) at approximately 1% higher than 2019 levels. It reported strong short-term demand for the group, with bookings at approximately 40% above 2019 levels for its Americas full-service managed property. Also, it witnessed a solid recovery in the Asia Pacific region. Given the continued ease-of-travel restrictions and improvement in airlines, the momentum is likely to have continued in the third quarter.
Emphasis on the integration of new growth platforms (through the Apple Leisure Group acquisition), improved airlift for key Americas destinations and a favorable pricing environment are likely to have aided the company’s performance in the to-be-reported quarter.
The solid performance of Owned and leased hotels as well as managed and franchised business segment is likely to have driven the top line in the third quarter. The Zacks Consensus Estimate for Owned and leased hotels revenues is currently pegged at $347 million, indicating growth of 31.9% from $263 million reported in the year-ago quarter. The consensus mark for Management and franchise fees is pegged at $191 million, indicating a surge of 69% from $113 million reported in the previous quarter.
However, supply chain issues and COVID-related restrictions (in certain markets) are likely to have hurt the company’s operations in the third quarter. Although revenue per available room (RevPAR) is likely to have increased sequentially, it is expected to have remained below pre-pandemic levels.
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 0.00%. 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 sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Crocs, Inc. (CROX - Free Report) has an Earnings ESP of +1.48% and a Zacks Rank #1.
Shares of Crocs have declined 57.9% in the past year. CROX’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 21.9%.
RCI Hospitality Holdings, Inc. (RICK - Free Report) has an Earnings ESP of +4.15% and a Zacks Rank #2.
Shares of RCI Hospitality have increased 21.8% in the past year. RICK’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 39.4%.
Cedar Fair, L.P. (FUN - Free Report) has an Earnings ESP of +2.38% and a Zacks Rank #3.
Shares of Cedar Fair have declined 12.3% in the past year. FUN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 5.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.