Hilton (HLT) Q4 Earnings and Revenues Surpass Estimates
Hilton Worldwide Holdings Inc. HLT reported fourth-quarter 2021 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. The top and bottom lines improved on a year-over-year basis. Global recovery from the COVID-19 pandemic and upward trend in travel and tourism contributed to the company’s performance.
In this regard, Christopher J. Nassetta, president & CEO of Hilton, stated, “We were pleased to see continued recovery throughout 2021, with our fourth quarter showing strong results versus 2019. Although new variants of the virus have had some short-term impact, we are optimistic about the acceleration of recovery across all segments during 2022. We remain confident in the future of our business and our ability to continue to drive strong net unit growth and free cash flow, fueled by higher margins.”
During the year ended Dec 31, 2021, only about 360 hotels were closed, compared to approximately 1,280 hotels during the year ended Dec 31, 2020.
Q4 in Detail
Hilton reported adjusted earnings per share (EPS) of 72 cents, beating the Zacks Consensus Estimate of 71 cents. In the prior-year quarter, the company had reported an adjusted loss per share of 10 cents.
Quarterly revenues of $1,836 million beat the consensus mark of $1,708 million. The top line soared 106.3% from the year-ago quarter’s levels.
RevPAR and Adjusted EBITDA
In the quarter under review, system-wide comparable revenue per available room (RevPAR) surged 104.2% year over year (on a currency-neutral basis) owing to an increase in occupancy and average daily rate (ADR). Occupancy and ADR increased 20.7% and 84.1%, respectively, year over year. However, RevPAR is down 13.5% compared with 2019 levels.
During the quarter, fee revenues increased 91% year over year. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) during the fourth quarter was $512 million compared with $204 million reported in the prior-year quarter.
Hilton Worldwide Holdings Inc. Price, Consensus and EPS Surprise
Hilton Worldwide Holdings Inc. price-consensus-eps-surprise-chart | Hilton Worldwide Holdings Inc. Quote
Cash & Debt
As of Dec 31, 2021, cash and cash equivalent balance (inclusive of restricted cash) amounted to $1,512 million compared with $1,387 million in the previous quarter. The company reported long-term debt outstanding of $8.9 billion (flat sequentially), excluding deferred financing costs and discounts, with a weighted average interest rate of approximately 4%.
Business Updates
During fourth-quarter 2021, Hilton opened 94 new hotels. It achieved net unit growth of nearly 13,100 rooms.
As of Dec 31, 2021, Hilton's development pipeline comprised nearly 2,670 hotels, with nearly 408,000 rooms across 115 countries and territories — including 28 countries and territories where it currently does not have any running hotels. Moreover, 249,600 rooms in the development pipeline were located outside the United States, and 198,000 rooms were under construction. For 2021, the company expects net unit growth to be nearly 5%.
2021 Results
For 2021, the company reported adjusted earnings per share of $2.08. For full-year 2021, the company’s revenues were $5,788 million, up 34.4% year over year. In 2021, the company opened 414 new hotels totaling 67,100 rooms and achieved net unit growth of 55,100 rooms.
Zacks Rank & Key Picks
Hilton currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks from the Zacks Consumer Discretionary sector are Crocs, Inc. CROX, RCI Hospitality Holdings, Inc. RICK and JAKKS Pacific, Inc. JAKK.
Crocs flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 41.6%, on average. Shares of Crocs have increased 24.6% in the past year.
The Zacks Consensus Estimate for CROX’s 2022 sales and EPS indicates a rise of 48.5% and 23.2%, respectively, from the year-ago period’s levels.
RCI Hospitality flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 63.2%, on average. Shares of RCI Hospitality have gained 17% in the past year.
The Zacks Consensus Estimate for RICK’s 2022 sales and EPS suggests growth of 33.9% and 19.6%, respectively, from the year-ago period’s levels.
JAKKS Pacific flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 48.9%, on average. Shares of JAKKS Pacific have increased 35.1% in the past year.
The Zacks Consensus Estimate for JAKK’s 2022 sales and EPS suggests growth of 4.9% and 227.8%, respectively, from the year-ago period’s levels.
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Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report
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