Hilton Gears Up to Post Q2 Earnings: What's in Store for the Stock?

Core Viewpoint - Hilton Worldwide Holdings Inc. is expected to report second-quarter 2025 results on July 23, with projected earnings per share (EPS) of $2.03, reflecting a 6.3% increase from the previous year [1][8]. Revenue and Earnings Estimates - The consensus estimate for second-quarter revenues is approximately $3.06 billion, indicating a 3.6% rise from the same quarter last year [2]. - The expected growth in management and franchise hotel revenues is 6.5% year over year, reaching $905.6 million, while franchise and licensing fees are projected to increase by 8.1% to $745 million [5]. Factors Influencing Performance - Hilton's second-quarter performance is anticipated to benefit from strong group travel, international development, and growth in non-RevPAR fees [3]. - High-margin management and franchise fees are expected to significantly contribute to revenue, supported by hotel openings and brand conversions [4]. - Growth in Hilton Honors membership and stable performance from small and mid-sized business travel are also likely to enhance results [6]. Challenges and Projections - Despite positive factors, macroeconomic challenges such as cost inflation, foreign currency impacts, and uncertainty in corporate travel may pressure Hilton's bottom line [7]. - The company projects adjusted diluted EPS for the second quarter to be between $1.97 and $2.02 [7]. Earnings Prediction - The model predicts an earnings beat for Hilton, with an Earnings ESP of +2.70% and a Zacks Rank of 3 (Hold) [8][9].