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Hilton Worldwide (HLT) Q3 Earnings Preview: What You Should Know Beyond the Headline Estimates
ZACKS· 2025-10-17 14:16
Core Viewpoint - Analysts project Hilton Worldwide Holdings Inc. (HLT) will report quarterly earnings of $2.04 per share, a 6.3% increase year over year, with revenues expected to reach $3.02 billion, reflecting a 5.2% increase from the same quarter last year [1]. Earnings Projections - The consensus EPS estimate has been revised 0.4% lower over the last 30 days, indicating a reevaluation of initial estimates by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts expect 'Revenues- Base and other management fees' to be $94.05 million, a 6.9% increase year over year [5]. - 'Revenues- Other revenues' are projected at $65.78 million, indicating a 13.4% increase from the prior year [5]. - 'Revenues- Franchise and licensing fees' are estimated at $751.19 million, reflecting a 7.6% year-over-year change [5]. - 'Revenues- Incentive management fees' are forecasted to reach $70.33 million, a 6.6% increase year over year [6]. - 'Revenues- Owned and leased hotels' are expected to be $309.47 million, suggesting a 6.2% decrease year over year [6]. - 'Revenues- Cost reimbursement' is projected at $1.72 billion, indicating a 5.6% increase year over year [6]. Property Metrics - Total Systemwide Rooms are expected to reach 1,315,901, up from 1,250,506 in the same quarter last year [7]. - Total Owned / Leased Rooms are projected at 15,816, down from 17,163 in the same quarter of the previous year [7]. - Revenue per available room - System-Wide is expected to be $121.42, slightly up from $121.40 in the same quarter last year [8]. - Total Managed Rooms are forecasted to reach 260,506, up from 253,040 in the same quarter of the previous year [8]. - Total Franchised Rooms are projected at 1,047,250, an increase from 980,303 in the same quarter last year [9]. Stock Performance - Over the past month, shares of Hilton Worldwide have returned -3.3%, while the Zacks S&P 500 composite has changed by +0.7% [9]. - Currently, HLT holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [9].