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Hyatt Hotels (NYSE:H) Q3 Earnings: What Can You Expect?

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Hyatt Hotels Corporation (NYSE:H) is scheduled to report Q3 earnings results after markets close for trading on November 4, 2020.

The company is expected to report earnings of -$1.30/share on revenue of $429.3 million. The consensus earnings per share (EPS) of -$1.30/share is based on a poll of 18 analysts and represents a decline in eps of −450.7% over the same quarter last year, when the company reported earnings of $0.37/share.

The revenue forecast of $429.3 million based on a poll of 11 analysts implies a year-over-year (YoY) decline in revenue of −64.7%. Last year the company reported $1.215 billion in revenue for the quarter.

Expected to report EPS of -$1.30/share for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $429.33 $1,215.00 −64.7%
EPS -$1.30 $0.37 −450.7%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 2 quarters.

What are your expectations from Hyatt Hotels Corporation for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 -$1.41 -$1.80 -27.3% Missed
Q1, 2020 -$0.18 -$0.35 -95.8% Missed
Q4, 2019 $0.27 $0.47 72.1% Beat
Q3, 2019 $0.33 $0.37 11.9% Beat
Q2, 2019 $0.46 $0.76 65.7% Beat
Q1, 2019 $0.26 $0.45 75.1% Beat
Q4, 2018 $0.30 $0.62 110.2% Beat
Q3, 2018 $0.25 $0.33 31.4% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 2.6%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 3, 2020 $48 $49.24 2.6% Increase
May 6, 2020 $51.16 $50.40 −1.5% Decline
February 19, 2020 $88.68 $92.86 4.7% Increase
October 30, 2019 $72.95 $74.74 2.5% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.57, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.57 implies a 0.5% chance of earnings manipulation.

Fundamentals And Technical Analysis

Hyatt Hotels Corporation is currently trading at $53.58/share, down −1.8% for the day. The company is trading at approximately 56.5% of its 52-week high of $94.98/share. The company’s stock price is up 8.8% since the last earnings report and down −3.3% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 43.00 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:H Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 19.37 and a forward P/E multiple of −12.77.

Hyatt Hotels Corporation’s current share price also implies a price-to-book (P/B) multiple of 1.54. The following table summarizes some other key fundamental ratios:

Data as of October 28, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $53.58
P/E Ratio 19.4x
P/E Ratio (Fwd) −12.8x
PEG Ratio −0.6
Total Debt / Total Capital 34.9%
Levered Free Cash Flow -$424 million
EV / EBITDA 29.7x

Finbox

Hyatt Hotels Corporation is a mid-cap stock with a market capitalization of $5.518 billion and a total enterprise value of $6.973 billion. The company operates in the Consumer Discretionary sector and the Hotels, Restaurants & Leisure industry.

Hyatt Hotels Corporation, a hospitality company, develops, owns, operates, manages, franchises, licenses, or provides services to hotels, resorts, and other properties. It operates through four segments: Owned and Leased Hotels, Americas Management and Franchising, ASPAC Management and Franchising, and EAME/SW Asia Management and Franchising. The company operates its properties under the Park Hyatt, Miraval, Grand Hyatt, Alila, Andaz, The Unbound Collection by Hyatt, Destination, Hyatt Regency, Hyatt, Hyatt Ziva, Hyatt Zilara, Thompson Hotels, Hyatt Centric, Caption by Hyatt, Hyatt House, Hyatt Place, tommie, Hyatt Residence Club, Hyatt Residences, Exhale, World of Hyatt, and Hyatt Resorts brands. As of June 30, 2020, its hotel portfolio consisted of approximately 900 hotels in 65 countries. It primarily serves corporations; national, state, and regional associations; specialty market accounts, including social, government, military, educational, religious, and fraternal accounts; travel agency and luxury organizations; and a group of individual consumers. Hyatt Hotels Corporation has a strategic alliance with Small Luxury Hotels to provide benefits to the members of World of Hyatt loyalty program by providing additional stay opportunities at luxury hotels primarily in Europe. The company was formerly known as Global Hyatt Corporation and changed its name to Hyatt Hotels Corporation in June 2009. Hyatt Hotels Corporation was founded in 1957 and is headquartered in Chicago, Illinois.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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