Hilton Worldwide Holdings Inc. (NYSE:HLT) is scheduled to report Q3 earnings results before markets open for trading on November 4, 2020.
The company is expected to report earnings of -$0.04/share on revenue of $959.9 million. The consensus earnings per share (EPS) of -$0.04/share is based on a poll of 22 analysts and represents a decline in eps of −103.5% over the same quarter last year, when the company reported earnings of $1.05/share.
The revenue forecast of $959.9 million based on a poll of 10 analysts implies a year-over-year (YoY) decline in revenue of −59.9%. Last year the company reported $2.395 billion in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarter.
What are your expectations from Hilton Worldwide Holdings Inc. for earnings this quarter? Let us know in the comments!
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 4.6%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|August 6, 2020||$80||$83.70||4.6%||Increase|
|May 7, 2020||$70.79||$72.19||2.0%||Increase|
|February 11, 2020||$111.37||$113.70||2.1%||Increase|
|October 23, 2019||$90.73||$96.91||6.8%||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 −3.30, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.30 implies a 0.0% chance of earnings manipulation.
Fundamentals And Technical Analysis
Hilton Worldwide Holdings Inc. is currently trading at $84.97/share, down −3.1% for the day. The company is trading at approximately 73.8% of its 52-week high of $115.48/share. The company’s stock price is up 1.5% since the last earnings report and down −4.5% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 43.55 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 461.80 and a forward P/E multiple of 611.30.
Hilton Worldwide Holdings Inc.’s current share price also implies a price-to-book (P/B) multiple of −18.13. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 30, 2020|
|Stock Price (Current)||$84.97|
|P/E Ratio (Fwd)||611.3x|
|Total Debt / Total Capital||32.4%|
|Levered Free Cash Flow||$1.615 billion|
|EV / EBITDA||29.9x|
Hilton Worldwide Holdings Inc. is a large-cap stock with a market capitalization of $24.312 billion and a total enterprise value of $32.482 billion. The company operates in the Consumer Discretionary sector and the Hotels, Restaurants & Leisure industry.
Hilton Worldwide Holdings Inc., a hospitality company, owns, leases, manages, develops, and franchises hotels and resorts. It operates through two segments, Management and Franchise, and Ownership. The company engages in the hotel management and licensing of its brands. It operates hotels under the Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Signia by Hilton, Hilton Hotels & Resorts, Curio Collection by Hilton, DoubleTree by Hilton, Tapestry Collection by Hilton, Embassy Suites by Hilton, Motto by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton, Hilton Grand Vacations, and Tempo by Hilton brands. The company operates in North America, South America, and Central America, including various Caribbean nations; Europe, the Middle East, and Africa; and the Asia Pacific. As of February 21, 2020, the company had approximately 6,100 properties with approximately 971,000 rooms in 119 countries and territories. Hilton Worldwide Holdings Inc. was founded in 1919 and is headquartered in McLean, Virginia.