Hotel company Hilton (NYSE:HLT)
will be announcing earnings results tomorrow before market open. Here’s what investors should know.
Hilton met analysts’ revenue expectations last quarter, reporting revenues of $2.78 billion, up 6.7% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ adjusted operating income estimates.
This quarter, analysts are expecting Hilton’s revenue to grow 5.7% year on year to $2.72 billion, slowing from the 12.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.61 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Hilton has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.5% on average.
Looking at Hilton’s peers in the travel and vacation providers segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 7.5%, beating analysts’ expectations by 0.9%, and United Airlines reported revenues up 5.4%, topping estimates by 0.6%. Carnival traded up 1.1% following the results while United Airlines’s stock price was unchanged.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the travel and vacation providers stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.7% on average over the last month. Hilton is down 3.5% during the same time and is heading into earnings with an average analyst price target of $249.99 (compared to the current share price of $219.64).
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