Hotel company Hilton (NYSE: HLT) will be reporting earnings this Wednesday before market open. Here’s what to look for.
Hilton missed analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $2.70 billion, up 4.7% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EPS estimates but EBITDA guidance for next quarter missing analysts’ expectations.
Is Hilton a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Hilton’s revenue to grow 4.9% year on year to $3.09 billion, slowing from the 10.9% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 6 downward revisions over the last 30 days (we track 10 analysts). Hilton has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Hilton’s peers in the travel and vacation providers segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 9.5%, beating analysts’ expectations by 1.7%, and Delta reported flat revenue, topping estimates by 1.5%. Carnival traded up 5.9% following the results while Delta was also up 11.9%.
Read our full analysis of Carnival’s results here and Delta’s results here.
There has been positive sentiment among investors in the travel and vacation providers segment, with share prices up 11.3% on average over the last month. Hilton is up 7.3% during the same time.
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