What To Expect From Hilton’s (HLT) Q2 Earnings
Hotel company Hilton (NYSE:HLT) will be reporting earnings this Tuesday before the bell. Here’s what you need to know.
Hilton missed analysts’ revenue expectations last quarter, reporting revenues of $2.94 billion, up 9% year on year. It was a slower quarter for the company, with full-year EBITDA guidance meeting analysts’ expectations.
Is Hilton a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Hilton’s revenue to grow 6.2% year on year, in line with the 6.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Hilton has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Hilton’s peers in the consumer discretionary - travel and vacation providers segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Delta delivered year-on-year revenue growth of 18.7%, beating analysts’ expectations by 3.9%, and Travel + Leisure reported revenues up 4.4%, topping estimates by 1.6%. Delta traded down 3.2% following the results while Travel + Leisure’s stock price was unchanged.
Read our full analysis of Delta’s results here and Travel + Leisure’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the consumer discretionary - travel and vacation providers stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.1% on average over the last month. Hilton is down 2.7% during the same time and is heading into earnings with an average analyst price target of $351.21 (compared to the current share price of $326.50).
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