Hilton to Post Q4 Earnings: What's in the Cards for the Stock?

Core Viewpoint - Hilton Worldwide Holdings Inc. is expected to report its fourth-quarter 2024 results on February 6, with positive indicators suggesting potential earnings growth and revenue increases compared to the previous year [1][4]. Financial Performance - In the last reported quarter, Hilton's adjusted earnings per share (EPS) was $1.92, exceeding the Zacks Consensus Estimate of $1.85 by 3.8%, and reflecting a 15% increase from the previous year's adjusted EPS of $1.67 [2]. - The Zacks Consensus Estimate for fourth-quarter EPS has risen to $1.68, indicating no year-over-year change, while revenue is projected at nearly $2.75 billion, suggesting a 5.3% growth from the prior year [3]. Revenue Drivers - Hilton's fourth-quarter revenue growth is attributed to strong group bookings, a recovery in business travel, and expansion in international markets [4]. - The company anticipates a revenue increase of 3.1% year-over-year from Management and Franchise Hotels (projected at $796.6 million) and a 7.7% increase from Owned and Leased Hotels (projected at $344.6 million) [6]. Margin and Cost Management - Hilton's margins are expected to benefit from disciplined pricing strategies and operational efficiencies, although inflationary pressures on labor and input costs may limit margin expansion [7]. Earnings Guidance - For the fourth quarter of 2024, Hilton expects net income between $371 million and $395 million, with adjusted EBITDA projected between $804 million and $834 million, and adjusted EPS anticipated to be between $1.57 and $1.67 [8]. Earnings Prediction - The company's model indicates a likely earnings beat, supported by a positive Earnings ESP of +1.42% and a Zacks Rank of 3 (Hold) [9].