Research Desk Line-up: Expedia Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 4, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Hilton Worldwide Holdings Inc. (NYSE: HLT), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=HLT, following the Company's reporting of its second quarter fiscal 2017 results on July 26, 2017. The hotelier outperformed top- and bottom-line expectations and raised adjusted EBITDA and cash available for capital return guidance for the full year 2017. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Lodging industry. Pro-TD has currently selected Expedia, Inc. (NASDAQ: EXPE) for due-diligence and potential coverage as the Company posted on July 27, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Expedia when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on HLT; also brushing on EXPE. With the links below you can directly download the report of your stock of interest free of charge at:
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Earnings Reviewed
For Q2 2017, Hilton's revenue rose 20.3% to $2.35 billion compared to revenue of $1.95 billion in Q2 2016. The Company's revenue numbers exceeded analysts' estimates of $2.30 billion.
For the three months ended June 30, 2017, Hilton's system-wide comparable revenue per available room (RevPAR) grew 1.8% primarily from increased Average Daily Rate (ADR), benefiting from the strength at the Company's international hotels. Hilton's franchise fee totaled $372 million up 20% on a y-o-y basis, while management revenues surged 42% to $85 million, as a result of increases in RevPAR of 1.7% at comparable managed and franchised hotels as well as from the addition of new managed and franchised properties to Hilton's portfolio. The Company's adjusted EBITDA was $519 million for Q2 2017 compared to $412 million for Q2 2016.
During Q2 2017, net income attributable to Hilton's stockholders from continuing operations was $166 million, or $0.51 per share, compared to $100 million, or $0.29 per share, in Q2 2016. The Company's diluted EPS, adjusted for special items, was $0.52 for the reported quarter compared to $0.29 for the prior year's same quarter. Hilton's earnings numbers surpassed Wall Street's estimates of $0.50 per share.
Development
During Q2 2017, Hilton opened 107 hotels consisting of 15,600 rooms, achieving net unit growth of 13,400 rooms, which is approximately 30% higher on a y-o-y basis.
As of June 30, 2017, Hilton's development pipeline totaled approximately 332,000 rooms at 2,153 hotels throughout 104 countries and territories, including 36 countries and territories where Hilton does not currently have any open hotels. Of the rooms in the pipeline, 169,000 rooms, or more than half of the pipeline, were located outside the US, and over 169,000 rooms were under construction.
Hilton opened the first Tapestry Collection by Hilton in Syracuse, New York in May 2017, just four months after the brand's launch, and as of July 2017, 78 Tapestry hotels were in the pipeline or in various stages of approval. In Q2 2017, Tru by Hilton, which launched in 2016, opened its first three hotels and, as of July 2017, had 420 hotels in the pipeline or in various stages of approval.
Balance Sheet and Liquidity
As of June 30, 2017, Hilton had $6.7 billion of long-term debt outstanding, excluding deferred financing costs and discount, with a weighted average interest rate of 4.1%. The Company's total cash and cash equivalents were $909 million as of June 30, 2017, including $125 million of restricted cash and cash equivalents. Hilton had no borrowings outstanding under its $1.0 billion revolving credit facility as of June 30, 2017.
During Q2 2017, Hilton repurchased 4.5 million shares of common stock at a cost of approximately $282 million at an average price per share of $63.31. Since repurchases began in March 2017 through July 2017, Hilton repurchased 6.8 million shares for approximately $425 million.
In July 2017, Hilton's Board of Directors authorized a regular quarterly cash dividend of $0.15 per share of common stock to be paid on or before September 29, 2017, to holders of record of its common stock as of the close of business on August 18, 2017.
Outlook
For FY17, Hilton is forecasting system-wide RevPAR to grow between 1.0% and 3.0% on a comparable and currency neutral basis compared to 2016. The Company is estimating diluted EPS, before special items to be in the range of $1.61 and $1.68 and diluted EPS, adjusted for special items to be in the band of $1.78 and $1.85.
Hilton is expecting adjusted EBITDA to be between $1.88 billion and $1.92 billion for FY17, while management and franchise fee revenue is projected to increase between 8% and 10% on a y-o-y pro-forma basis. The Company is estimating cash available for capital return to be between $1.0 billion and $1.1 billion, while net unit growth is expected to be approximately 50,000 rooms to 55,000 rooms.
For Q3 2017, Hilton is forecasting system-wide RevPAR to grow between 0.0% and 2.0% on a comparable and currency neutral basis compared to Q3 2016. The Company is projecting net income between $156 million and $169 million, and adjusted EBITDA between $490 million and $510 million.
For the upcoming quarter, Hilton's Management and franchise fee revenue is projected to increase between 7% and 9% compared to Q3 2016 on a pro-forma basis.
Stock Performance
On Thursday, August 03, 2017, the stock closed the trading session at $62.13, marginally up 0.24% from its previous closing price of $61.98. A total volume of 1.96 million shares have exchanged hands. Hilton Worldwide's stock price soared 2.69% in the last three months, 8.43% in the past six months, and 32.64% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 11.33%. The stock is trading at a PE ratio of 545.00 and has a dividend yield of 0.97%. At Thursday's closing price, the stock's net capitalization stands at $20.18 billion.
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