Hilton Worldwide (NYSE:HLT) Issues Earnings Results

Key Points

• Hilton beat earnings expectations: Quarterly EPS was $2.45, above the $2.37 consensus, while revenue reached $1.37 billion and increased 6.6% year over year. Net margin was 12.69%, although return on equity was negative 35.24%.
• Shares traded near record levels: Hilton opened at $339.48, compared with a 52-week range of $253.54 to $364.50, and had a market capitalization of $76.41 billion.
• Analyst sentiment remains positive: Recent firms upgraded Hilton or raised price targets, including JPMorgan’s increase to $387; MarketBeat reports a “Moderate Buy” consensus rating with a $356.65 target price.

Hilton Worldwide (NYSE:HLT - Get Free Report) announced its quarterly earnings results on Tuesday. The company reported $2.45 earnings per share for the quarter, beating the consensus estimate of $2.37 by $0.08, FiscalAI reports. The company had revenue of $1.37 billion during the quarter, compared to analysts' expectations of $3.37 billion. Hilton Worldwide had a negative return on equity of 35.24% and a net margin of 12.69%. The firm's quarterly revenue was up 6.6% compared to the same quarter last year. During the same period in the previous year, the business earned $2.11 earnings per share.

Hilton Worldwide Price Performance

Hilton Worldwide stock opened at $339.48 on Tuesday. Hilton Worldwide has a one year low of $253.54 and a one year high of $364.50. The business's fifty day moving average is $322.75 and its 200 day moving average is $319.39. The stock has a market capitalization of $76.41 billion, a PE ratio of 49.85, a price-to-earnings-growth ratio of 2.82 and a beta of 1.10.

Insider Buying and Selling

In other news, insider Laura Fuentes sold 7,289 shares of the business's stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $309.81, for a total transaction of $2,258,205.09. Following the completion of the transaction, the insider directly owned 33,458 shares of the company's stock, valued at $10,365,622.98. The trade was a 17.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Chris Carr sold 439 shares of the business's stock in a transaction on Monday, September 14th. The shares were sold at an average price of $310.34, for a total transaction of $136,239.26. Following the sale, the director owned 8,252 shares of the company's stock, valued at approximately $2,560,925.68. This represents a 5.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 2.70% of the company's stock.

Analyst Upgrades and Downgrades

HLT has been the subject of several recent analyst reports. CICC Research began coverage on Hilton Worldwide in a research report on Wednesday, August 12th. They set an "outperform" rating for the company. Evercore upgraded shares of Hilton Worldwide from an "in-line" rating to an "outperform" rating in a report on Tuesday, July 21st. Deutsche Bank Aktiengesellschaft raised shares of Hilton Worldwide from a "hold" rating to a "buy" rating and set a $365.00 price target for the company in a research report on Wednesday, August 12th. JPMorgan Chase & Co. lifted their price target on Hilton Worldwide from $365.00 to $387.00 and gave the stock an "overweight" rating in a research report on Wednesday, October 21st. Finally, Morgan Stanley raised their price target on shares of Hilton Worldwide from $336.00 to $349.00 and gave the company an "overweight" rating in a research report on Thursday, October 22nd. Two analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eight have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $356.65.

About Hilton Worldwide

Hilton Worldwide Holdings Inc is a global hospitality company that develops, owns, manages, franchises and licenses hotels, resorts and other lodging properties. Its portfolio includes brands such as Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Hilton Hotels & Resorts, DoubleTree by Hilton, Embassy Suites, Hampton by Hilton, Hilton Garden Inn, Homewood Suites, Home2 Suites and Tru by Hilton.

The company provides accommodations and related services for business and leisure travelers, including guest rooms, meeting and event facilities, food and beverage operations, resort amenities and loyalty program benefits through Hilton Honors.

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