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Hilton Worldwide Holdings Inc. Stock Falls After Mixed Fourth-Quarter Results


Hilton Worldwide Holdings Inc.’s stock (HLT) experienced a 2.2% decline early Wednesday following the release of their fourth-quarter results. Although the hotel operator’s revenue matched consensus expectations, their guidance for 2024 fell short.

Financial Performance

During the fourth quarter, Hilton reported net income of $148 million, or 57 cents per share, compared to $328 million, or $1.21 per share, in the same period the previous year. However, adjusted earnings per share came in at $1.68, surpassing the FactSet consensus of $1.57. Additionally, revenue for the quarter rose to $2.609 billion from $2.444 billion a year ago, in line with the FactSet consensus.

Strong RevPAR Growth

Hilton experienced notable growth in systemwide revenue per available room (RevPAR). On a currency-neutral basis, RevPAR increased by 5.7%, and when compared to the same period in 2019 before the COVID-19 pandemic, it rose by an impressive 13.5%.

CEO’s Statement

Hilton’s CEO, Christopher J. Nassetta, expressed satisfaction with the company’s performance, stating, “Positive momentum in openings continued throughout the year, with more openings in the fourth quarter than any other quarter in the company’s history.”

Future Outlook

Looking ahead to 2024, Hilton anticipates a gradual climb in systemwide RevPAR on a currency-neutral basis, ranging from 2% to 4%. The company also provided earnings per share (EPS) guidance, expecting a range of $6.57 to $6.71, while adjusted EPS is predicted to range from $6.80 to $6.94. However, the FactSet consensus for EPS is slightly higher at $7.05.

First Quarter Expectations

For the first quarter of the upcoming year, Hilton projects adjusted EPS in the range of $1.36 to $1.44. The FactSet consensus for this period is slightly lower at $1.42.

Stock Performance

Over the past 12 months, Hilton’s stock has gained 31.3%, outperforming the S&P 500’s 19% increase.

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