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Hilton Worldwide Holdings Inc. HLT is scheduled to report first-quarter 2025 results on April 29, before the opening bell.
HLT’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 5.1%. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Trend in Estimate Revision of HLT
The Zacks Consensus Estimate for first-quarter earnings per share (EPS) is pegged at $1.61, indicating growth of 5.2% from the $1.53 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $2.71 billion, suggesting growth of 5.2% from the prior-year quarter’s reported figure.
Hilton Worldwide Holdings Inc. Price and EPS Surprise
Hilton Worldwide Holdings Inc. price-eps-surprise | Hilton Worldwide Holdings Inc. Quote
Let us look at how things have shaped up in the quarter.
Factors Likely to Shape Hilton’s Quarterly Results
Hilton’s first-quarter 2025 performance is likely to have benefited from robust leisure and business travel trends, an expanding property footprint and strategic brand partnerships.
Sustained momentum in corporate transient demand and steady leisure bookings are likely to have aided the company’s revenue per available room (RevPAR) performance in the first quarter. For the to-be-reported quarter, our model projects system-wide comparable RevPAR to increase 2.9% year over year to $107.14.
Strong contributions from management and franchise fees are expected to have supported the company’s top-line performance. Our model predicts revenues from management and franchise hotels to grow 2.2% year over year to $763.1 million. Our model estimates franchise and licensing fees to rise 9.3% year over year to $624.3 million.
Strength in Hilton Honors membership, lengthened booking windows and strong demand in conventions and company meetings are likely to have supported the company’s performance in the to-be-reported quarter. Hilton expects adjusted EBITDA to be between $770 million and $790 million.
However, macroeconomic headwinds from inflationary pressures, foreign currency volatility and ongoing labor cost challenges may have weighed on the company’s bottom line in the first quarter. Hilton expects diluted EPS adjusted for special items to be between $1.57 and $1.63.
What Our Model Says About HLT Stock
Our proven model does not conclusively predict an earnings beat for Hilton this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that is not the case here.
HLT’s Earnings ESP: Hilton has an Earnings ESP of -1.38%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
HLT’s Zacks Rank: The company currently has a Zacks Rank #3.