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Why Is Hilton Worldwide Stock Trading Higher on Tuesday?
HLTHilton(HLT) Benzinga·2025-04-29 17:16

Core Insights - Hilton Worldwide Holdings Inc. reported first-quarter adjusted earnings per share of 1.72,exceedingthestreetviewof1.72, exceeding the street view of 1.61 [1] - Quarterly sales reached 2.69billion,whichfellshortoftheanalystconsensusestimateof2.69 billion, which fell short of the analyst consensus estimate of 2.72 billion [1] - Adjusted EBITDA for the first quarter was 795million,anincreasefrom795 million, an increase from 750 million a year ago, with an expanded adjusted EBITDA margin of 73.7% compared to 70.4% in the previous year [1] Financial Performance - System-wide comparable RevPAR increased by 2.5% on a currency-neutral basis for the first quarter compared to the same period in 2024 [2] - Quarterly net income margin improved to 11.1% from 10.4% [2] - The company opened 186 hotels, adding a total of 20,100 rooms, resulting in 14,000 net room additions during the first quarter of 2025 [2] Strategic Developments - The company expanded its pipeline of lifestyle properties, introducing the Tempo by Hilton brand in the U.K., marking its first hotel outside the U.S., along with new hotels in Greece and Utah [3] - As of March 31, the company had 11.2billioninoutstandingdebt,excludingdeferredfinancingcostsanddiscounts[3]CashManagement−Totalcashandequivalentsamountedto11.2 billion in outstanding debt, excluding deferred financing costs and discounts [3] Cash Management - Total cash and equivalents amounted to 807 million as of March 31, 2025, which included 76millionofrestrictedcash[4]−Thefirmrepurchased3.7millionsharesofcommonstockduringthefirstquarter,leadingtoatotalcapitalreturnof76 million of restricted cash [4] - The firm repurchased 3.7 million shares of common stock during the first quarter, leading to a total capital return of 927 million for the quarter and 1,157millionyear−to−datethroughApril[4]−Theboardofdirectorsauthorizedaregularquarterlycashdividendof1,157 million year-to-date through April [4] - The board of directors authorized a regular quarterly cash dividend of 0.15 per share to be paid on June 27 [4] Future Outlook - Hilton raised its full-year 2025 adjusted EPS guidance to a range of 7.76–7.76–7.94, up from the previous range of 7.71–7.71–7.82, which compares favorably to the 7.93analystestimate[5]−Forthesecondquarter,thecompanyexpectsadjustedEPSbetween7.93 analyst estimate [5] - For the second quarter, the company expects adjusted EPS between 1.97 and 2.02,whichisbelowthe2.02, which is below the 2.11 estimate [5] - HLT shares were trading lower by 1.30% to $224.27 at the last check on Tuesday [5]