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Factors Setting the Tone for Hyatt's (H) Earnings in Q4
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Hyatt Hotels Corporation (H - Free Report) is scheduled to report fourth-quarter 2019 numbers on Feb 19, after the closing bell.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 42.3%. Notably, the bottom line surpassed analyst expectations in the trailing 15 quarters.
Which Way are Estimates Headed?
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 20 cents, indicating a decline of 67.7% from the prior-year reported figure. The company’s earnings estimates have witnessed downward revisions over the past 60 days, reflecting analyst concern regarding the stock.
For revenues, the consensus mark stands at $1.18 billion, suggesting growth of 4% from the year-ago quarter.
Factors at Play
Unit growth strategy, robust loyalty program and increase in management, franchise, and other fees are likely to have benefited the company’s fourth-quarter performance. Moreover, increase in occupancy rate and average daily rate (ADR) is likely to have driven the company’s revenues in the quarter to be reported.
The Zacks Consensus Estimate for Management, franchise and other fees is pegged at $160 million, suggesting growth of 10.3% from the prior-year quarter. Moreover, the estimated figure indicates an improvement of 8.1% from $148 million reported in the previous quarter.
Hyatt has been steadily investing in various businesses via acquisitions and divestment of low-margin units.
However, lower demand — particularly in the United States and China — is likely to have weighed on the company’s fourth-quarter performance. Moreover, high expenses stemming from mergers and intense competition are expected to have affected margins. This, in turn, is likely to get reflected in the fourth-quarter top line.
Our proven model does not conclusively predict an earnings beat for Hyatt 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. But that's not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hyatt has a Zacks Rank #3 and an Earnings ESP of -70.00%.
Stocks With Favorable Combination
Here are a few stocks from the Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat in the fourth quarter:
Marriott Vacations Worldwide Corporation (VAC - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank #3.
Melco Resorts & Entertainment Limited (MLCO - Free Report) has an Earnings ESP of +11.34% and a Zacks Rank #3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Factors Setting the Tone for Hyatt's (H) Earnings in Q4
Hyatt Hotels Corporation (H - Free Report) is scheduled to report fourth-quarter 2019 numbers on Feb 19, after the closing bell.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 42.3%. Notably, the bottom line surpassed analyst expectations in the trailing 15 quarters.
Which Way are Estimates Headed?
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 20 cents, indicating a decline of 67.7% from the prior-year reported figure. The company’s earnings estimates have witnessed downward revisions over the past 60 days, reflecting analyst concern regarding the stock.
For revenues, the consensus mark stands at $1.18 billion, suggesting growth of 4% from the year-ago quarter.
Factors at Play
Unit growth strategy, robust loyalty program and increase in management, franchise, and other fees are likely to have benefited the company’s fourth-quarter performance. Moreover, increase in occupancy rate and average daily rate (ADR) is likely to have driven the company’s revenues in the quarter to be reported.
The Zacks Consensus Estimate for Management, franchise and other fees is pegged at $160 million, suggesting growth of 10.3% from the prior-year quarter. Moreover, the estimated figure indicates an improvement of 8.1% from $148 million reported in the previous quarter.
Hyatt has been steadily investing in various businesses via acquisitions and divestment of low-margin units.
However, lower demand — particularly in the United States and China — is likely to have weighed on the company’s fourth-quarter performance. Moreover, high expenses stemming from mergers and intense competition are expected to have affected margins. This, in turn, is likely to get reflected in the fourth-quarter top line.
Hyatt Hotels Corporation Price and EPS Surprise
Hyatt Hotels Corporation price-eps-surprise | Hyatt Hotels Corporation Quote
What Does the Zacks Model Say
Our proven model does not conclusively predict an earnings beat for Hyatt 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. But that's not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Hyatt has a Zacks Rank #3 and an Earnings ESP of -70.00%.
Stocks With Favorable Combination
Here are a few stocks from the Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat in the fourth quarter:
WW International, Inc. (WW - Free Report) has an Earnings ESP of +15.33% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Marriott Vacations Worldwide Corporation (VAC - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank #3.
Melco Resorts & Entertainment Limited (MLCO - Free Report) has an Earnings ESP of +11.34% and a Zacks Rank #3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>