Core Insights - Hilton Worldwide reported better-than-expected earnings for Q4 2024, with adjusted EPS of $1.76, surpassing market expectations of $1.69, while total revenue was slightly below projections at $2.783 billion compared to the forecasted $2.794 billion [2][7] Financial Performance - Adjusted EPS for Q4 2024 was $1.76, reflecting a year-over-year increase of 4.8% from $1.68 in Q4 2023 [3] - Total revenue reached $2.783 billion, marking a 6.7% increase from $2.609 billion in Q4 2023, although it fell short of estimates [3][7] - Net income soared to $505 million, a significant increase of 236.7% from $150 million in the same quarter last year, largely due to an income tax benefit [3][6] - Adjusted EBITDA rose 6.8% year-over-year to $858 million, indicating operational efficiency [3][6] - RevPAR increased by 3.5% during the quarter, although this growth was lower than the previous year's 5.7% [3][8] Business Strategy - Hilton operates a diverse portfolio of hotels and resorts across 126 countries, catering to various market segments, which helps in capturing a wide customer demographic [4] - The company emphasizes an asset-light management and franchise model, allowing for scalable growth without significant capital investment [5] - Hilton approved 34,200 new rooms in Q4, with a development pipeline of nearly 498,600 rooms, positioning itself for future growth [9] Market Outlook - For the upcoming year, Hilton anticipates a RevPAR increase of 2% to 3% and projects net income between $1.829 billion and $1.858 billion, with adjusted EBITDA forecasted between $3.7 billion and $3.74 billion [12] - The company is focusing on Environmental, Social, and Governance (ESG) initiatives to enhance brand appeal and foster long-term loyalty [10]

Financial Performance - Diluted EPS for Q4 2024 was $2.06 and $6.14 for the full year, exceeding guidance[1] - Net income for Q4 2024 was $505 million and $1,539 million for the full year, also exceeding guidance[1] - Total revenues for Q4 2024 reached $2.783 billion, a 6.7% increase from $2.609 billion in Q4 2023[27] - For the year ended December 31, 2024, total revenues were $11.174 billion, a 9.2% increase from $10.235 billion in 2023[27] - Net income attributable to Hilton stockholders for Q4 2024 was $505 million, compared to $147 million in Q4 2023, representing a 243.5% increase[27] - For the full year 2024, net income attributable to Hilton stockholders was $1.535 billion, compared to $1.141 billion in 2023, reflecting a robust year-over-year growth[39] - The company reported a net income of $1,539 million for the year ended December 31, 2024, compared to $1,151 million in 2023, marking a 33.7% increase[45] Revenue Metrics - System-wide comparable RevPAR increased by 3.5% in Q4 and 2.7% for the full year compared to 2023[2][3] - Revenue per Available Room (RevPAR) for Q4 2024 increased by 3.5% to $110.33 from $106.55 in Q4 2023[28] - Average Daily Rate (ADR) for Q4 2024 was $157.73, reflecting a 1.9% increase from $154.83 in Q4 2023[28] - Hilton's management and franchise segment reported a RevPAR increase of 3.5% to $109.46 for Q4 2024 compared to Q4 2023[28] Development and Growth - Approved 34,200 new rooms for development in Q4 2024, bringing the total development pipeline to 498,600 rooms, an 8% increase from 2023[1][7] - Net unit growth for 2024 was 7.3%, with 98,400 room openings for the year[1][6] - The total number of hotels in the Hilton system reached 8,447 properties with 1,268,206 rooms as of December 31, 2024[32] Cash and Capital Management - As of December 31, 2024, total cash and cash equivalents were $1,376 million[8] - The company repurchased 3.1 million shares in Q4 2024, totaling $744 million, with a full year capital return of $3.0 billion[10] - Capital return for 2025 is projected to be approximately $3.3 billion[1] Future Projections - Full year 2025 net income is projected to be between $1,829 million and $1,858 million[1] - Full year 2025 Adjusted EBITDA is projected to be between $3,700 million and $3,740 million[1] - The company projects net income attributable to Hilton stockholders for the three months ending March 31, 2025, to be between $371 million and $386 million[48] - For the year ending December 31, 2025, the projected net income attributable to Hilton stockholders is expected to be between $1,823 million and $1,852 million[48] Operational Efficiency - Adjusted EBITDA for the year ended December 31, 2024, was $1.780 billion, compared to $1.638 billion in 2023, showing a positive trend in operational performance[39] - Adjusted EBITDA for the year ending December 31, 2025, is forecasted to be between $3,700 million and $3,740 million[50] - The net income margin for the three months ended December 31, 2024, was 18.2%, significantly higher than 5.7% in the same period of 2023[42] Debt and Leverage - Long-term debt, including current maturities, increased to $11,151 million as of December 31, 2024, from $9,196 million in 2023, a rise of 21.1%[45] - The net debt to Adjusted EBITDA ratio improved to 2.9 in 2024 from 2.7 in 2023, indicating better leverage management[45] - The company uses net debt and net debt to Adjusted EBITDA ratio as non-GAAP financial measures to evaluate financial leverage[60] Cost Management - Total expenses for Q4 2024 were $2.294 billion, up from $2.209 billion in Q4 2023, marking a 3.8% increase[27] - The company experienced a decrease in contract acquisition costs, net of refunds, from $69 million in Q4 2023 to $18 million in Q4 2024, a decline of 73.9%[35] - Hilton's capital expenditures for property and equipment decreased by 36.4% from $151 million in 2023 to $96 million in 2024[35] Special Items - Hilton's total special items after taxes for Q4 2024 amounted to a loss of $73 million, compared to a gain of $287 million in Q4 2023[39] Hotel Classification and Metrics - The company defines comparable hotels as those active for at least one full calendar year without changes in brand or ownership, excluding strategic partner hotels[62] - The company has 1,883 non-comparable hotels as of December 31, 2024, which includes hotels added after January 1, 2023, or those undergoing significant changes[62] - Occupancy is calculated as the total number of room nights sold divided by total room nights available, serving as a gauge of demand[63] - Average Daily Rate (ADR) is determined by dividing hotel room revenue by the total number of room nights sold, providing insights into pricing levels[64] - Revenue per Available Room (RevPAR) is calculated by dividing hotel room revenue by total room nights available, indicating performance correlated to occupancy and ADR[65] - The pipeline includes rooms under construction for hotels being built or converted to the company's system[67]

Hilton Worldwide Holdings Inc. (HLT) is scheduled to report its fourth-quarter 2024 results on Feb. 6, before the opening bell.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the last reported quarter, adjusted earnings per share (EPS) of $1.92 topped the Zacks Consensus Estimate of $1.85 by 3.8%. The reported value rose 15% from the year-ago quarter’s adjusted EPS of $1.67.The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an ave ...

Wall Street analysts forecast that Hilton Worldwide Holdings Inc. (HLT) will report quarterly earnings of $1.68 per share in its upcoming release, pointing to no change from the year-ago quarter. It is anticipated that revenues will amount to $2.75 billion, exhibiting an increase of 5.3% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.7% to its current level. This demonstrates the covering analysts' collective reassessment of ...

Core Viewpoint - Wall Street anticipates flat earnings for Hilton Worldwide Holdings Inc. in the upcoming quarter, with a consensus EPS estimate of $1.68, unchanged from the previous year, while revenues are expected to rise by 5.3% to $2.75 billion [1][3]. Earnings Expectations - The earnings report is scheduled for release on February 6, 2025, and could influence stock movement depending on whether actual results exceed or fall short of expectations [2]. - A positive earnings surprise could lead to a stock price increase, while a miss may result in a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.3% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Hilton Worldwide is higher than the Zacks Consensus Estimate, suggesting a recent bullish sentiment among analysts [10]. Earnings Surprise Prediction - Hilton Worldwide has an Earnings ESP of +1.42%, indicating a likelihood of beating the consensus EPS estimate [11]. - The stock currently holds a Zacks Rank of 3, which suggests a neutral outlook [11]. Historical Performance - In the last reported quarter, Hilton Worldwide exceeded the expected EPS of $1.85 by delivering $1.92, resulting in a surprise of +3.78% [12]. - The company has successfully beaten consensus EPS estimates in the last four quarters [13]. Conclusion - While Hilton Worldwide is positioned as a strong candidate for an earnings beat, other factors should also be considered when evaluating the stock ahead of the earnings release [16].

Core Insights - Hilton Worldwide Holdings Inc. (HLT) has a strong history of beating earnings estimates and is well-positioned for future earnings success [1][3] - The company reported earnings of $1.92 per share for the most recent quarter, exceeding the expected $1.85 per share, resulting in a surprise of 3.78% [2] - The average surprise for the last two quarters was 3.51%, indicating consistent performance above expectations [1][2] Earnings Estimates and Predictions - Hilton Worldwide's earnings estimates have been trending higher, supported by its history of earnings surprises [3] - The company currently has an Earnings ESP of +1.42%, suggesting analysts are optimistic about its earnings prospects [6] - A positive Earnings ESP combined with a Zacks Rank of 3 (Hold) indicates a strong likelihood of another earnings beat [6] Statistical Insights - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [4] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [5] Upcoming Earnings Report - Hilton Worldwide's next earnings report is expected to be released on February 6, 2025 [6]

Company Performance and Growth - Hilton Worldwide Holdings Inc (HLT) has seen its shares gain 12.7% in the past six months, outperforming the Zacks Hotels and Motels industry, the Zacks Consumer Discretionary sector, and the S&P 500 [1] - The Zacks Consensus Estimate for the company's 2025 earnings per share (EPS) is $7.85, indicating 12.2% year-over-year growth, with first-quarter 2025 earnings estimates showing 7.8% year-over-year growth [3] - The company's earnings surpassed expectations in each of the trailing four quarters, with an average surprise of 5.8% [3] Demand and Revenue Trends - Hilton is benefiting from robust booking trends driven by strong demand for both corporate and social meetings and events, reflecting an increase in leisure and business travel demand [5] - In Q3 2024, the company's system-wide Revenue per Available Room (RevPAR) increased 1.4% year over year, with business transient RevPAR rising 2% [6] - Management forecasts a Q4 2024 system-wide RevPAR increase of 1-2% year over year, supported by robust group bookings and recovery in business transient travel [6] Global Expansion and Acquisitions - Hilton opened 531 new hotels in Q3 2024, achieving 7.8% net unit growth, with a development pipeline of nearly 3,525 hotels and 492,400 rooms across 120 countries and territories [7] - The company recently opened its 8,000th hotel globally and expanded to 900 hotels in Asia-Pacific and EMEA [8] - Hilton acquired the Graduate Hotels brand and a majority controlling interest in Sydell Group to expand its presence in the lifestyle and luxury hotel markets, with plans to develop up to 100 NoMad properties worldwide [9] Capital-Light Business Model - Hilton has transformed into a capital-light operating business, focusing on growing market share, units, and free cash flow per share while maintaining a strong balance sheet [10] - In Q3 2024, the company repurchased 3.3 million shares worth approximately $727 million and returned $2.4 billion to shareholders through buybacks and dividends through October [10] Challenges and Risks - RevPAR in China declined 9% year over year in Q3 2024 due to difficult domestic travel comparisons, typhoon disruptions, and limited international inbound travel [11] - Elevated inflation and interest rates pose challenges to Hilton's growth strategy, potentially delaying openings and new developments [12] - Consumer demand for services is sensitive to economic conditions, travel patterns, and discretionary spending levels, which could impact Hilton's revenues and profitability [13] Sector Comparison - Strategic Education, Inc (STRA) has a Zacks Rank 1, with a trailing four-quarter negative earnings surprise of 40.4% and a 5.6% stock gain in the past year [14] - Trip.com Group Limited (TCOM) has a Zacks Rank 1, with a trailing four-quarter earnings surprise of 42.8% and an 87.3% stock surge in the past year [15] - Universal Technical Institute, Inc (UTI) has a Zacks Rank 1, with a trailing four-quarter earnings surprise of 54.6% and an 88.8% stock hike in the past year [16]

Core Insights - Grubhub and Hilton are expanding their partnership to provide on-demand food and grocery delivery to over 2,600 hotels under the Hampton by Hilton, Tru by Hilton, and Spark by Hilton brands, enhancing guest convenience [1][2][3] - The partnership allows guests to access Grubhub's Marketplace of over 375,000 merchants by scanning a QR code, and includes a promotional offer of one free month of Grubhub+ for additional benefits [1][2] - The success of Grubhub Onsite at Homewood Suites and Home2 Suites, where orders have more than doubled since its launch in 2023, indicates strong demand for this service among hotel guests [2][3] Company Overview - Grubhub is a leading U.S. food ordering and delivery marketplace, featuring over 365,000 restaurant partners across more than 4,000 U.S. cities [5] - Hilton operates over 8,300 properties with more than 1.25 million rooms in 138 countries, recognized for its hospitality and innovative technology enhancements [6] - Hampton by Hilton, Tru by Hilton, and Spark by Hilton are part of Hilton's portfolio, focusing on quality accommodations and value for guests [7][9][10]

Core Viewpoint - Hilton Worldwide Holdings Inc. has been experiencing significant growth in earnings and an expanding price-to-earnings (P/E) ratio, leading to its outperformance against the S&P 500 by approximately 15% [1] Group 1 - Hilton's strong earnings growth and P/E expansion are key factors contributing to its recent market performance [1] - The company is favored for a long-term, buy-and-hold investment strategy, particularly for those seeking high-quality earnings [1] - The focus on dividend and income stocks aligns with Hilton's financial performance, making it an attractive option for investors [1]

Core Viewpoint - Hilton Worldwide Holdings Inc. reported strong third-quarter 2024 earnings and revenues that surpassed estimates, driven by improvements in revenue per available room (RevPAR) due to higher occupancy rates and average daily rates (ADR) [2][3]. Financial Performance - Adjusted earnings per share (EPS) for Q3 2024 were $1.92, exceeding the Zacks Consensus Estimate of $1.85, and reflecting a 15% increase from the previous year's adjusted EPS of $1.67 [3]. - Franchise and licensing fees rose 8.6% year-over-year to $698 million, while base and other management fees also increased by 8.6% to $88 million [3][4]. - Adjusted EBITDA for the quarter was $904 million, an 8.4% year-over-year increase, surpassing the estimated $878.5 million [5]. Revenue Metrics - System-wide comparable RevPAR grew 1.4% year-over-year on a currency-neutral basis, attributed to increased occupancy and ADR [5]. - Owned and leased hotels' revenues decreased by 1.5% year-over-year to $330 million [4]. Balance Sheet and Shareholder Returns - As of September 30, 2024, cash and cash equivalents increased to $1,580 million from $731 million in the prior quarter, while long-term debt rose to $11.2 billion from $10.2 billion [6]. - Hilton repurchased 3.3 million shares worth approximately $764 million and declared a quarterly cash dividend of 15 cents per share [7]. Business Expansion - In Q3 2024, Hilton opened 531 new hotels, achieving a net room growth of 33,600 [8]. - The development pipeline includes nearly 3,525 hotels with almost 492,400 rooms across 120 countries, with expectations for net unit growth of 7-7.5% in 2024 [11]. Future Outlook - For Q4 2024, Hilton anticipates net income between $371-$395 million and adjusted EBITDA between $804 million and $834 million, with expected EPS between $1.57 and $1.67 [12]. - The company revised its 2024 net income estimate to $1,405-$1,429 million, down from a previous estimate of $1,532-$1,555 million, and adjusted EBITDA is expected to be between $3,375 million and $3,405 million [13]. - System-wide RevPAR growth for 2024 is now expected to be 2-2.5%, down from the prior estimate of 2-3% [14].