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Hyatt (H) to Announce Q4 Earnings: What's in the Cards?

·4 min read

Hyatt Hotels Corporation H is scheduled to report fourth-quarter 2021 results on Feb 16, 2022, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 692.3%.

Trend in Estimate Revision

The Zacks Consensus Estimate for the fourth-quarter bottom line is pegged at a loss of 12 cents per share, indicating an improvement of 93.2% from a loss of $1.77 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at approximately $1,150 million, suggesting a surge of 171.2% from the year-ago quarter’s reported figure.

Hyatt Hotels Corporation Price and EPS Surprise

Hyatt Hotels Corporation Price and EPS Surprise
Hyatt Hotels Corporation Price and EPS Surprise

Hyatt Hotels Corporation price-eps-surprise | Hyatt Hotels Corporation Quote

Let's take a look at how things have shaped up in the quarter.

Factors to Note

Hyatt’s fourth-quarter 2021 performance is likely to have benefitted from strong leisure transient demand, market share growth and a rise in bookings coming from existing loyalty members. During the previous quarter’s earnings call, the company stated that leisure transient revenue booked in October for all periods was over 20% ahead of 2019 levels. With a sequential reduction in cancellations coupled with progression of group and business transient demand, the momentum is likely to have persisted in the fourth quarter as well. Focus on direct channel business coupled with the integration of new growth platforms (through Apple Leisure Group acquisition) is likely to have aided the company’s performance in the to-be-reported quarter.

The solid performance of Owned and leased hotels as well as managed and the franchised business segment is likely to have driven the top line in the fourth quarter. The Zacks Consensus Estimate for Owned and leased hotels revenues is currently pegged at $279 million, indicating growth of 206.6% from $91 million in the year-ago quarter. The consensus mark for Management and franchise fees is pegged at $134 million, indicating a surge of 127.1% from $59 million reported in the previous quarter.

The negative influence of the omicron variant on hotel bookings coupled with supply chain issues are likely to have hurt the company’s operations in the fourth quarter. Although sequential improvements in RevPAR are likely, it is still anticipated to remain below the pre-pandemic levels in the to-be-reported quarter.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Hyatt this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: Hyatt has an Earnings ESP of +26.01%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks Poised to Beat Earnings Estimates

Here are some other stocks from the Zacks Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat:

Cedar Fair, L.P. FUN has an Earnings ESP of +6.02% and a Zacks Rank #1.

Shares of Cedar Fair have gained 43.6% in the past year. FUN’s earnings topped the consensus mark thrice but missed the same on one occasion, the average surprise being 16.5%.

Oxford Industries, Inc. OXM has an Earnings ESP of +1.86% and a Zacks Rank #2.

Shares of Oxford Industries have gained 14% in the past year. OXM’s earnings topped the consensus mark thrice but missed the same on one occasion, the average surprise being 96.7%.

PlayAGS, Inc. AGS has an Earnings ESP of +5.66% and a Zacks Rank #2.

Shares of AGS have gained 20.9% in the past year. AGS’ earnings have topped the consensus mark thrice but missed the same on one occasion, the average surprise being 33.3%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Hyatt Hotels Corporation (H) : Free Stock Analysis Report

Oxford Industries, Inc. (OXM) : Free Stock Analysis Report

Cedar Fair, L.P. (FUN) : Free Stock Analysis Report

PlayAGS, Inc. (AGS) : Free Stock Analysis Report

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