Hilton Worldwide (HLT) Up 0.6% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Hilton Worldwide Holdings Inc. reported strong second-quarter earnings and revenues that surpassed estimates, indicating resilience in its business model despite facing some temporary headwinds [2][3]. Financial Performance - Adjusted earnings per share (EPS) for Q2 2025 were $2.20, exceeding the Zacks Consensus Estimate of $2.04, and up from $1.91 in the same quarter last year [4]. - Total revenues reached $3.14 billion, beating the consensus mark of $3.08 billion, and reflecting a year-over-year increase of 6.3% [4]. - System-wide comparable Revenue Per Available Room (RevPAR) declined by 0.5% year over year on a currency-neutral basis due to occupancy declines [6]. - Adjusted EBITDA was $1 billion, representing a 9.9% increase year over year, surpassing the estimate of $958.7 million [6]. Balance Sheet and Cash Flow - As of June 30, 2025, total cash and cash equivalents were $448 million, down from $807 million as of March 31, 2025 [7]. - Long-term debt outstanding was $10.9 billion, a decrease from $11.15 billion as of December 31, 2024 [7]. - The company repurchased 3.2 million shares at $235.36 per share and paid dividends totaling $36 million during the quarter [7][8]. Business Expansion - Hilton added 221 hotels, comprising 26,100 rooms, achieving a net room growth of 22,600 in Q2 2025 [9]. - The company expanded its luxury and lifestyle brand portfolio with key openings and new signings, including the debut of LXR Hotels & Resorts in central Paris [9][10]. - As of June 30, 2025, Hilton's development pipeline included 3,636 hotels representing 510,600 rooms across 128 countries, with an expected net unit growth of 6-7% for 2025 [11]. Future Outlook - For Q3 2025, Hilton anticipates net income between $453 million and $467 million, with adjusted EBITDA expected to be between $935 million and $955 million [12]. - The company predicts adjusted EPS for Q3 to be between $1.98 and $2.04, and expects system-wide RevPAR to remain flat year over year [12]. - For the full year 2025, net income is estimated to be in the range of $1.64 billion to $1.68 billion, with adjusted EBITDA expected between $3.65 billion and $3.71 billion [13].