Why Is Hilton Worldwide (HLT) Down 1.9% Since Last Earnings Report?

Core Viewpoint - Hilton Worldwide Holdings Inc. reported strong first-quarter 2024 results, exceeding earnings and revenue estimates, driven by improvements in revenue per available room (RevPAR) and a robust development pipeline [2][3][10]. Financial Performance - Adjusted earnings per share (EPS) for Q1 2024 were $1.53, surpassing the Zacks Consensus Estimate of $1.41 by 8.5%, and increased 23.4% from $1.24 in the prior year [3]. - Total revenues reached $2.57 billion, exceeding the consensus mark of $2.55 billion, reflecting a 12.2% year-over-year increase [3]. - Franchise and licensing fees rose 12.4% year over year to $571 million, while base management fees increased 32.5% to $106 million [3][4]. RevPAR and EBITDA - System-wide comparable RevPAR grew 2% year over year on a currency-neutral basis, driven by higher occupancy and average daily rates (ADR) [5]. - Adjusted EBITDA for Q1 was $750 million, up 17% year over year, exceeding expectations of $691.7 million [5]. Balance Sheet and Shareholder Returns - As of March 31, 2024, cash and cash equivalents totaled $1.4 billion, up from $875 million in the previous quarter, while long-term debt increased to $10.3 billion [6]. - The company repurchased 3.4 million shares worth approximately $662 million and returned $0.7 billion to shareholders through buybacks and dividends [6]. Business Updates - Hilton opened 106 new hotels in Q1 2024, achieving net unit growth of nearly 14,200 rooms [8]. - The development pipeline includes approximately 3,380 hotels with nearly 472,300 rooms across 119 countries, with expected net unit growth of 6-6.5% for 2024 [9]. Future Outlook - For Q2 2024, Hilton anticipates net income between $443-$457 million and adjusted EBITDA of $890-$910 million, with EPS projected between $1.80 and $1.86 [10]. - For the full year 2024, net income is estimated at $1.58-$1.62 billion, with adjusted EBITDA expected between $3.37 billion and $3.42 billion [11].