Hilton shares slip on soft results and guidance

NEW YORK - Hilton Worldwide Holdings Inc. (NYSE:HLT ) reported third-quarter earnings that beat analyst estimates, but revenue fell short and the company provided weaker-than-expected guidance, sending shares down 1.7% in early trading.

The hotel chain reported adjusted earnings per share of $1.92, surpassing the analyst consensus of $1.85. However, revenue came in at $2.87 billion, below the $2.9 billion analysts had expected. System-wide comparable RevPAR increased 1.4% YoY on a currency neutral basis.

Hilton's outlook for the fourth quarter and full year 2024 disappointed investors. The company forecasts Q4 adjusted EPS of $1.57-$1.67, below the $1.76 consensus. For the full year 2024, Hilton projects adjusted EPS of $6.93-$7.03, compared to analyst expectations of $7.06.

Christopher J. Nassetta, President & CEO of Hilton, commented on the results: "We were pleased to deliver continued strong bottom line results that exceeded our guidance, despite slower top line growth which was driven by modestly slower macro trends, weather impacts and unfavorable calendar shifts."

The company added a record 36,600 rooms to its system in Q3, resulting in net unit growth of 7.8% YoY. Hilton's development pipeline grew to 492,400 rooms as of September 30, 2024, an 8% increase from the previous year.

Hilton now projects full-year 2024 system-wide RevPAR growth of 2.0-2.5% on a comparable and currency neutral basis. The company expects net unit growth for 2025 to be between 6.0% and 7.0%.

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Source: Investing.com