Growth Investors: Industry Analysts Just Upgraded Their Hilton Grand Vacations Inc. (NYSE:HGV) Revenue Forecasts By 19%
Celebrations may be in order for Hilton Grand Vacations Inc. (NYSE:HGV) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.
Following the upgrade, the most recent consensus for Hilton Grand Vacations from its six analysts is for revenues of US$4.9b in 2024 which, if met, would be a huge 37% increase on its sales over the past 12 months. Statutory earnings per share are presumed to jump 36% to US$4.06. Previously, the analysts had been modelling revenues of US$4.1b and earnings per share (EPS) of US$3.76 in 2024. Sentiment certainly seems to have improved in recent times, with a solid increase in revenue and a small lift in earnings per share estimates.
Check out our latest analysis for Hilton Grand Vacations
Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$54.63, suggesting that the forecast performance does not have a long term impact on the company's valuation.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Hilton Grand Vacations' rate of growth is expected to accelerate meaningfully, with the forecast 37% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 23% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Hilton Grand Vacations is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Hilton Grand Vacations.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Hilton Grand Vacations going out to 2025, and you can see them free on our platform here..
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
