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Hyatt Q3 Earnings on the Horizon: What's in Store for the Stock?
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Hyatt Hotels Corporation (H - Free Report) is scheduled to report third-quarter 2024 results on Oct. 31, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 61.1%.
H’s earnings topped the consensus mark in three of the trailing four quarters and missed once, with the average surprise being 35.9%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Hyatt’s Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter adjusted earnings per share (EPS) has trended downward to 90 cents from 94 cents in the past 30 days. The estimated figure indicates growth of 28.6% from the year-ago quarter’s adjusted EPS of 70 cents.
For revenues, the consensus mark is pegged at $1.64 billion, which indicates an increase of 1% from the year-ago quarter’s figure.
Factors at Play for Hyatt’s Q3 Earnings
Hyatt’s results in third-quarter 2024 are likely to have been aided by heightened leisure and business travel demand across the company’s customer segments. Strong group business transient travel and contributions from large corporate accounts, particularly in major urban markets are likely to have aided the company’s top line. The increased travel demands are likely to have driven an increase in occupancy and average daily rate (“ADR”), thus fostering growth in comparable system-wide revenue per available room (RevPAR).
Our model expects comparable systemwide RevPAR to have increased 5% year over year to $152.82. We expect ADR and occupancy rates to have increased 2.1% to $206.52 and 200 basis points to 74%, respectively, year over year.
Furthermore, the company consistently focuses on its World of Hyatt loyalty program, geographic expansion initiatives and inorganic growth strategies. In the quarter, net room growth is likely to have aided the revenues.
We expect Base management fees, Incentive management fees and Franchise and Other fees to have increased year over year by 5.3% to $99 million, 22.4% to $62.4 million and 12.7% to $118.3 million, respectively.
The company’s progress with respect to its transition to a leisure-driven portfolio, including the launch of High Prive (luxury travel advisor program), as well as the expansion of benefits within the World of Hyatt programs bode well. This involves the addition of small luxury hotel properties along with the ability to use points for experiences through Midland exhibitions and American Airlines.
However, high costs are likely to have marginally overshadowed the margins. We expect total direct and general and administrative expenses to have increased 0.2% year over year to $1.51 billion. Adjusted EBITDA is expected to have increased 18.5% year over year to $292.6 million.
Our proven model does not conclusively predict an earnings beat for Hyatt this time around. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hyatt currently has an Earnings ESP of -23.38% and a Zacks Rank #3.
NCLH’s earnings for the to-be-reported quarter are expected to have increased 23.68%. It reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, with the average surprise being 5.7%.
Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +5.84% and a Zacks Rank of 3 at present.
CHH is expected to have registered a 5% increase year over year in earnings for the to-be-reported quarter. It reported better-than-expected earnings in two of the trailing four quarters and missed twice, with the average surprise being 3.4%.
Marriott International, Inc. (MAR - Free Report) currently has an Earnings ESP of +5.03% and a Zacks Rank of 3.
MAR’s earnings for the to-be-reported quarter are expected to have increased 9.5% year over year. It reported better-than-expected earnings in three of the trailing four quarters and missed once, with the average surprise being 16.9%.
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Hyatt Q3 Earnings on the Horizon: What's in Store for the Stock?
Hyatt Hotels Corporation (H - Free Report) is scheduled to report third-quarter 2024 results on Oct. 31, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 61.1%.
H’s earnings topped the consensus mark in three of the trailing four quarters and missed once, with the average surprise being 35.9%.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Hyatt’s Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter adjusted earnings per share (EPS) has trended downward to 90 cents from 94 cents in the past 30 days. The estimated figure indicates growth of 28.6% from the year-ago quarter’s adjusted EPS of 70 cents.
For revenues, the consensus mark is pegged at $1.64 billion, which indicates an increase of 1% from the year-ago quarter’s figure.
Factors at Play for Hyatt’s Q3 Earnings
Hyatt’s results in third-quarter 2024 are likely to have been aided by heightened leisure and business travel demand across the company’s customer segments. Strong group business transient travel and contributions from large corporate accounts, particularly in major urban markets are likely to have aided the company’s top line. The increased travel demands are likely to have driven an increase in occupancy and average daily rate (“ADR”), thus fostering growth in comparable system-wide revenue per available room (RevPAR).
Our model expects comparable systemwide RevPAR to have increased 5% year over year to $152.82. We expect ADR and occupancy rates to have increased 2.1% to $206.52 and 200 basis points to 74%, respectively, year over year.
Furthermore, the company consistently focuses on its World of Hyatt loyalty program, geographic expansion initiatives and inorganic growth strategies. In the quarter, net room growth is likely to have aided the revenues.
We expect Base management fees, Incentive management fees and Franchise and Other fees to have increased year over year by 5.3% to $99 million, 22.4% to $62.4 million and 12.7% to $118.3 million, respectively.
The company’s progress with respect to its transition to a leisure-driven portfolio, including the launch of High Prive (luxury travel advisor program), as well as the expansion of benefits within the World of Hyatt programs bode well. This involves the addition of small luxury hotel properties along with the ability to use points for experiences through Midland exhibitions and American Airlines.
However, high costs are likely to have marginally overshadowed the margins. We expect total direct and general and administrative expenses to have increased 0.2% year over year to $1.51 billion. Adjusted EBITDA is expected to have increased 18.5% year over year to $292.6 million.
Hyatt Hotels Corporation Price and EPS Surprise
Hyatt Hotels Corporation price-eps-surprise | Hyatt Hotels Corporation Quote
What Our Model Predicts for Hyatt
Our proven model does not conclusively predict an earnings beat for Hyatt this time around. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hyatt currently has an Earnings ESP of -23.38% and a Zacks Rank #3.
Stocks Poised to Beat Earnings
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) currently has an Earnings ESP of +1.36% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
NCLH’s earnings for the to-be-reported quarter are expected to have increased 23.68%. It reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, with the average surprise being 5.7%.
Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +5.84% and a Zacks Rank of 3 at present.
CHH is expected to have registered a 5% increase year over year in earnings for the to-be-reported quarter. It reported better-than-expected earnings in two of the trailing four quarters and missed twice, with the average surprise being 3.4%.
Marriott International, Inc. (MAR - Free Report) currently has an Earnings ESP of +5.03% and a Zacks Rank of 3.
MAR’s earnings for the to-be-reported quarter are expected to have increased 9.5% year over year. It reported better-than-expected earnings in three of the trailing four quarters and missed once, with the average surprise being 16.9%.