Hilton beats by $0.06, beats on revs; guides Q4 EPS in-line; offers FY18 RevPAR outlook (71.32)
- Reports Q3 (Sep) earnings of $0.56 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $0.50; revenues rose 7.0% year/year to $2.35 bln vs the $2.28 bln Capital IQ Consensus.
- System-wide comparable RevPAR increased 1.3 percent on a currency neutral basis for the third quarter compared to the prior year
- Adjusted EBITDA for the third quarter was $524 million, an increase of 11 percent from pro forma Adjusted EBITDA for the third quarter of 2016. Adjusted EBITDA margin was 56.9 percent, an increase of 170 basis points from pro forma Adjusted EBITDA margin for the third quarter of 2016
- Co issues in-line guidance for Q4, sees EPS of $0.41-0.45, excluding non-recurring items, vs. $0.44 Capital IQ Consensus Estimate; System-wide RevPAR is expected to increase between 1.0 percent and 3.0 percent on a comparable and currency neutral basis compared to the fourth quarter of 2016.
- FY18 Guidance
- For 2018, system-wide RevPAR is expected to increase between 1.0 percent and 3.0 percent on a comparable and currency neutral basis compared to 2017. Given Hilton's strong development pipeline, unit growth should continue to accelerate in 2018 as its global system of rooms is expected to expand by approximately 6.5 percent on a net basis.