Hyatt Hotels Upgraded to Hold From Sell at Berenberg Bank Following Q1 Results
Hyatt Hotels Corporation (NYSE:H) reported its Q1 results last week, with EPS of ($0.33) coming in better than the consensus estimate of ($0.43). The better-than-expected earnings resulted in Berenberg Bank lifting its forecasts modestly and upgrading the company to hold from sell with a price target of $85 (up from $80).
According to the analysts at Berenberg Bank, the tour operating business acquired with Apple Leisure Group was the main driver of the Q1 EBITDA beat.
While Hyatt optically looked to lag peers’ revenue per available room recovery in Q1, the analysts believe the rapid recovery the company has cited in March and April suggests that this gap will close over the year. The improvements are being driven by a more rapid return of group bookings in the business, a segment where Hyatt is over-indexed.
| Symbol | Price | %chg |
|---|---|---|
| JIHD.JK | 1320 | 0 |
| INDHOTEL.NS | 854.1 | 0 |
| INDHOTEL.BO | 854 | 0 |
| BUVA.JK | 59 | 0 |
Hyatt Hotels Corporation's Impressive Q3 2024 Earnings
- Earnings Per Share (EPS) of $4.63, significantly surpassing estimates.
- Revenue reached approximately $1.63 billion, with a 3% increase in RevPAR.
- Net income stood at $471 million, indicating robust financial health.
Hyatt Hotels Corporation, trading on the NYSE:H, is a global hospitality leader known for its luxury hotels and resorts. Competing with giants like Marriott and Hilton, Hyatt has showcased impressive financial performance in the third quarter of 2024.
On October 31, 2024, Hyatt reported an Earnings Per Share (EPS) of $4.63, significantly outperforming the estimated $1.38. This remarkable achievement was highlighted during the Q3 2024 earnings call by CEO Mark Hoplamazian and CFO Joan Bottarini, underscoring the company's strong financial health.
The company's revenue for the quarter was approximately $1.63 billion, exceeding forecasts of $1.57 billion. This growth is supported by a 3% increase in comparable system-wide hotels RevPAR compared to the same period in 2023. Despite a slight 0.9% decrease in Net Package RevPAR for all-inclusive resorts, Hyatt reported a net rooms growth of about 4.3%, indicating an expansion in its hotel portfolio.
Hyatt's financial metrics further demonstrate its market position. The company's price-to-earnings (P/E) ratio stands at approximately 10.46, with a price-to-sales ratio of about 2.16 and an enterprise value to sales ratio of around 2.59. These figures reflect Hyatt's market value relative to its sales, showcasing favorable market valuation of its earnings.
The debt-to-equity ratio of approximately 1.02 indicates a balanced approach to financing its assets, though the current ratio of around 0.82 suggests room for improvement in covering short-term liabilities with short-term assets. Nonetheless, an earnings yield of about 9.56% points to strong earnings generation from investments in the stock, highlighting Hyatt's financial stability and growth potential.
