Hilton Hotels beats by $0.04, reports revs in-line; guides Q1 EPS below consensus; guides FY17 EPS in-line
- Reports Q4 (Dec) earnings of $0.70 per share, $0.04 better than the Capital IQ Consensus of $0.66; revenues rose 2.2% year/year to $2.92 bln vs the $2.93 bln Capital IQ Consensus.
- Achieved high end of guidance on system-wide comparable RevPAR with increases of 0.9% and 1.8% for the fourth quarter and full year 2016, respectively, on a currency neutral basis from the same periods in 2015
- Net unit growth was 45,000 rooms in 2016, representing a 6.6% growth in managed and franchised rooms
- Co issues downside guidance for Q1, sees EPS of $0.24-0.29 vs. $0.32 Capital IQ Consensus Estimate.
- Management and franchise fee revenue is projected to increase between 2-4%
- Co issues in-line guidance for FY17, sees EPS of $1.65-1.75 vs. $1.75 Capital IQ Consensus Estimate.
- Full year 2017 RevPAR projected to increase between 1.0-3.0%
- Capital expenditures, excluding amounts reimbursed by hotel owners, are projected to be between $150-200 million.
- Net unit growth is expected to be ~50,000-55,000 rooms.