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Dismal RevPAR Likely to Reflect on Hilton (HLT) Q1 Earnings
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Hilton Worldwide Holdings Inc. (HLT - Free Report) is scheduled to report first-quarter 2020 results on May 7, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 5.3%.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter earnings is pegged at 58 cents per share, suggesting a decline of 27.5% from 80 cents in the year-ago period. Notably, earnings estimates for the quarter have witnessed sharp downward revisions in the past 30 days. The consensus mark for revenues stands at $1.76 billion, indicating a decline of 20.3% from the prior-year reported figure.
Factors at Play
Hilton’s first-quarter results are likely to reflect negative impact of the coronavirus pandemic. The company’s occupancy and RevPAR are likely to have been impacted significantly by the coronavirus outbreak. Moreover, the company’s results in the quarter to be reported might reflect decline in Franchise and licensing fees, Incentive management fees, and Base and other management fees. Further, higher operating costs might get reflected in the first-quarter results.
Recently, the company provided preliminary first-quarter 2020 preliminary results. In first-quarter 2020, the company anticipates system-wide RevPAR to decline in the range of 22% to 24% owing to the coronavirus crisis. RevPAR in Americas and Europe, Middle East and Africa ("EMEA") are expected to decline in the range of 20% to 22%, each. Moreover, Asia Pacific is likely to witness RevPAR decrease between 43% and 45%.
Hilton Worldwide Holdings Inc. Price and EPS Surprise
Our proven model does not conclusively predict an earnings beat for Hilton 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.
Hilton currently has a Zacks Rank #5 (Strong Sell) and an Earnings ESP of -21.12%.
Here are a few stocks from the Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter.
GP Strategies Corporation has an Earnings ESP of +58.33% and a Zacks Rank #3, at present.
BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) currently has an Earnings ESP of +7.00% and a Zacks Rank #2.
Activision Blizzard, Inc. currently has an Earnings ESP of +10.39% and a Zacks Rank #3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
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Dismal RevPAR Likely to Reflect on Hilton (HLT) Q1 Earnings
Hilton Worldwide Holdings Inc. (HLT - Free Report) is scheduled to report first-quarter 2020 results on May 7, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 5.3%.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter earnings is pegged at 58 cents per share, suggesting a decline of 27.5% from 80 cents in the year-ago period. Notably, earnings estimates for the quarter have witnessed sharp downward revisions in the past 30 days. The consensus mark for revenues stands at $1.76 billion, indicating a decline of 20.3% from the prior-year reported figure.
Factors at Play
Hilton’s first-quarter results are likely to reflect negative impact of the coronavirus pandemic. The company’s occupancy and RevPAR are likely to have been impacted significantly by the coronavirus outbreak. Moreover, the company’s results in the quarter to be reported might reflect decline in Franchise and licensing fees, Incentive management fees, and Base and other management fees. Further, higher operating costs might get reflected in the first-quarter results.
Recently, the company provided preliminary first-quarter 2020 preliminary results. In first-quarter 2020, the company anticipates system-wide RevPAR to decline in the range of 22% to 24% owing to the coronavirus crisis. RevPAR in Americas and Europe, Middle East and Africa ("EMEA") are expected to decline in the range of 20% to 22%, each. Moreover, Asia Pacific is likely to witness RevPAR decrease between 43% and 45%.
Hilton Worldwide Holdings Inc. Price and EPS Surprise
Hilton Worldwide Holdings Inc. price-eps-surprise | Hilton Worldwide Holdings Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Hilton 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.
Hilton currently has a Zacks Rank #5 (Strong Sell) and an Earnings ESP of -21.12%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stock With Favorable Combinations
Here are a few stocks from the Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter.
GP Strategies Corporation has an Earnings ESP of +58.33% and a Zacks Rank #3, at present.
BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) currently has an Earnings ESP of +7.00% and a Zacks Rank #2.
Activision Blizzard, Inc. currently has an Earnings ESP of +10.39% 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>>