Hilton Grand Vacations reports Q2 (Jun) results, revs in-line; cuts FY19 outlook (32.70)
- Reports Q2 (Jun) earnings of $0.43 per share, may not be comparable to the two analyst estimate of $0.45; revenues fell 19.4% year/year to $454 mln vs the $454.44 mln S&P Capital IQ Consensus.
- Contract sales in the second quarter were $363 million, an increase of 1.7% from the same period in 2018.
- Co says EPS was affected by a net deferral of $18 million or $0.20 per share in the current period and a net recognition of $60 million or $0.61 per share in the same period in 2018.
- Co issues guidance for FY19, sees EPS of $2.04-2.21, may not be comparable to $2.70 S&P Capital IQ Consensus. Co says EPS guidance is affected by a net deferral of $36 million or $0.40 per share. Full-year 2019 contract sales are expected to be flat to down 3% (Prior +5-8%) due to softer than anticipated contract sales growth in the second quarter and flat to down contract sales in the second half of the year due to available inventory challenges, which is expected to continue into the second half of the year.
- "While we saw strong tour flow during the quarter, we continued to face pressure on our VPG from limited inventory availability in key markets. As a result, we are revising our full-year guidance to better align with current forecasts -- a decision we do not take lightly," says Mark Wang, president and CEO of Hilton Grand Vacations. "Above all, we remain committed to our goals of driving Net Owner Growth and maximizing customer engagement. We saw growth in transactions from both new and existing Owners -- driving 6% NOG growth. Our owner engagement remains high, with Owner arrivals up 8% year-to-date. We are moving with a sense of urgency to return to growth, and remain focused on our long-term objective of growing NOG and embedding future value into the business