Hilton Sees Q3 Earnings Below Market, Lifts FY24 Adj. EPS View; Stock Down - Update

(RTTNews) - Hilton Worldwide Holdings, Inc. (HLT), while reporting higher second-quarter earnings above market estimates, on Wednesday issued third-quarter outlook below the Street. Further, the company revised its fiscal 2024 forecast.

In pre-market activity on the NYSE, Hilton shares were losing around 2.8 percent to trade at $201.28.

For the third quarter, the company projects net income between $435 million and $448 million, earnings per share between $1.74 and $1.79, and adjusted earnings between $1.80 and $1.85.

Analysts on average expect the company to report earnings of $1.90 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

System-wide comparable RevPAR, on a currency neutral basis, for the quarter is projected to increase between 2 percent and 3 percent from last year.

Further, for fiscal 2024, the company now expects net income between $1.532 billion and $1.555 billion, earnings per share between $6.06 and $6.15, and adjusted earnings per share between $6.93 and $7.03. The Street estimates annual earnings of $7.11 per share.

For fiscal 2024, the company previously expected net income between $1.586 billion and $1.621 billion or $6.21 and $6.35 per share. Adjusted earnings were projected to be $6.89 and $7.03 per share.

Annual system-wide comparable RevPAR, on a currency neutral basis, is now projected to increase between 2 percent and 3 percent.

The company previously expected system-wide comparable RevPAR, on a currency neutral basis, to increase between 2 percent and 4 percent compared to 2023.

In the second quarter, net income attributable to Hilton stockholders grew to $421 million from last year's $411 million. Earnings per share were $1.67, up from prior year's $1.55.

Adjusted earnings were $1.91 per share, compared to $1.63 per share a year ago.

Total revenues went up to $2.95 billion from $2.66 billion a year ago.

Analysts expected earnings of $1.86 per share on revenues of $2.93 billion for the quarter.

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