Starwood Q1 Tops View; To Explore Strategic, Financial Alternatives; Stock Up

(RTTNews) - Starwood Hotels & Resorts Worldwide, Inc. (HOT) Wednesday said its attributable net income to the company in the first quarter declined to $99 million from $137 million last year. Earnings per share fell to $0.58 from $0.72.

Excluding special items, earnings per share from continuing operations was $0.65, while it totaled $0.63 in the first quarter of 2014. On average, 23 analysts polled by Thomson Reuters expected earnings of $0.57 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues dropped to $1.415 billion from $1.458 billion in the prior year. Analysts expected revenues of $1.39 billion.

Adam Aron, CEO on an interim basis, said, "In the first quarter, our overall results were ahead of our expectations, and with the actions we are taking to improve our performance going forward, we are modestly increasing our guidance range for both Adjusted EBITDA and EPS excluding special items for full year 2015."

Looking ahead to the second quarter, earnings per share are expected to be around $0.70 to $0.74. Analysts look for earnings of $0.79 per share.

For the full year, earnings per share before special items is expected to be in the range of $2.94 to $3.04. Wall Street looks for earnings of $2.97 per share.

Separately, the company said its Board of Directors has determined to explore a full range of strategic and financial alternatives to increase shareholder value, and has retained Lazard to assist in the process.

Bruce Duncan, Chairman of the Board, said, "...we will thoroughly explore the full range of strategic and financial alternatives available to Starwood to capitalize on our industry-leading global platform and best-in-class premium brands. No option is off the table, and we will take the time we need to thoroughly evaluate our opportunities and achieve the best result for our shareholders, business partners, and associates."

The Board is in the beginning stage of the strategic and financial review, and no assurance can be given as to its outcome or timing, Starwood added.

The stock, which closed down 0.5 percent on Tuesday at $80.80, climbed more than 7 percent in pre-market activity.