H World Group Full Year 2023 Earnings: Beats Expectations
H World Group (NASDAQ:HTHT) Full Year 2023 Results
Key Financial Results
Revenue: CN¥21.9b (up 58% from FY 2022).
Net income: CN¥4.09b (up from CN¥1.82b loss in FY 2022).
Profit margin: 19% (up from net loss in FY 2022). The move to profitability was driven by higher revenue.
EPS: CN¥12.83 (up from CN¥5.85 loss in FY 2022).
All figures shown in the chart above are for the trailing 12 month (TTM) period
H World Group Revenues and Earnings Beat Expectations
Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) also surpassed analyst estimates by 1.3%.
The primary driver behind last 12 months revenue was the Legacy-Huazhu segment contributing a total revenue of CN¥17.4b (80% of total revenue). Notably, cost of sales worth CN¥13.0b amounted to 59% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to CN¥2.12b (44% of total expenses). Explore how HTHT's revenue and expenses shape its earnings.
Looking ahead, revenue is forecast to grow 8.1% p.a. on average during the next 3 years, compared to a 9.8% growth forecast for the Hospitality industry in the US.
Performance of the American Hospitality industry.
The company's shares are down 3.8% from a week ago.
Risk Analysis
Before we wrap up, we've discovered 1 warning sign for H World Group that you should be aware of.
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.
