Hilton Tops Q1 Earnings but Soft Q2 Outlook Weigh on Sentiment

Hilton Worldwide (NYSE:HLT) posted first-quarter earnings that beat analyst expectations, but a softer revenue figure and a cautious second-quarter forecast tempered investor enthusiasm.

The hotel giant reported adjusted earnings of $1.72 per share, beating the consensus estimate of $1.62. Revenue came in slightly below expectations at $2.7 billion, compared to the projected $2.73 billion. System-wide comparable RevPAR grew 2.5% year-over-year on a currency-neutral basis, reflecting steady, though modest, demand growth.

For the second quarter of 2025, Hilton expects earnings per share between $1.97 and $2.02, falling short of the $2.11 analysts had anticipated. Its full-year 2025 EPS forecast was set at $7.76 to $7.94, bracketing the current consensus estimate of $7.93.

The company projects system-wide RevPAR growth to be flat to up 2.0% for the full year, highlighting a more cautious view on global travel momentum. Adjusted EBITDA is expected to range from $3.65 billion to $3.71 billion in 2025.

• Hilton Worldwide Holdings Inc. (NYSE:HLT) reported a strong fourth-quarter earnings with an EPS of $1.76, surpassing the estimated $1.67.
• The company's full-year diluted EPS was $6.14, exceeding the high end of their guidance, with an adjusted EPS of $7.12.
• Despite strong financial performance, Hilton faces challenges with a negative debt-to-equity ratio of -3.45 and a current ratio of 0.80.

Hilton Worldwide Holdings Inc. (NYSE:HLT) is a leading player in the global hospitality industry, known for its extensive portfolio of hotels and resorts. On February 6, 2025, Hilton reported its fourth-quarter earnings for 2024, showcasing a strong financial performance. The company achieved earnings per share (EPS) of $1.76, surpassing the estimated $1.67. Despite this, the revenue of approximately $2.78 billion slightly missed the estimated $2.79 billion.

Hilton's EPS of $1.76 not only exceeded the Zacks Consensus Estimate of $1.68 but also marked an improvement from the previous year's EPS of $1.68. This indicates a positive trend in the company's profitability. The net income for the fourth quarter was reported at $505 million, reflecting Hilton's ability to generate substantial profits. However, despite these positive results, Hilton's stock experienced a slight decline of 0.34%.

For the full year of 2024, Hilton reported a diluted EPS of $6.14, surpassing the high end of their guidance. When adjusted for special items, the diluted EPS was $7.12, again exceeding expectations. These figures highlight Hilton's strong financial performance throughout the year. The company's price-to-earnings (P/E) ratio of approximately 56.75 suggests that investors are willing to pay a premium for Hilton's earnings, indicating confidence in the company's future prospects.

Hilton's financial metrics provide further insights into its valuation. The price-to-sales ratio of about 6.02 suggests that investors are paying $6.02 for every dollar of sales. The enterprise value to sales ratio of around 6.96 reflects the company's total valuation relative to its sales. Additionally, the enterprise value to operating cash flow ratio of approximately 40.39 indicates how many times the operating cash flow can cover the enterprise value. These metrics highlight Hilton's strong market position and investor confidence.

Despite its strong financial performance, Hilton faces some challenges. The company has a negative debt-to-equity ratio of -3.45, which may indicate a higher level of debt compared to its equity. This could pose risks in terms of financial stability. Additionally, the current ratio of approximately 0.80 suggests that Hilton may face challenges in covering its short-term liabilities with its short-term assets. These factors highlight the importance of monitoring Hilton's financial health and managing its debt levels effectively.

• Hilton Worldwide Holdings Inc. (NYSE:HLT) reported a strong fourth-quarter earnings with an EPS of $1.76, surpassing the estimated $1.67.
• The company's full-year diluted EPS was $6.14, exceeding the high end of their guidance, with an adjusted EPS of $7.12.
• Despite strong financial performance, Hilton faces challenges with a negative debt-to-equity ratio of -3.45 and a current ratio of 0.80.

Hilton Worldwide Holdings Inc. (NYSE:HLT) is a leading player in the global hospitality industry, known for its extensive portfolio of hotels and resorts. On February 6, 2025, Hilton reported its fourth-quarter earnings for 2024, showcasing a strong financial performance. The company achieved earnings per share (EPS) of $1.76, surpassing the estimated $1.67. Despite this, the revenue of approximately $2.78 billion slightly missed the estimated $2.79 billion.

Hilton's EPS of $1.76 not only exceeded the Zacks Consensus Estimate of $1.68 but also marked an improvement from the previous year's EPS of $1.68. This indicates a positive trend in the company's profitability. The net income for the fourth quarter was reported at $505 million, reflecting Hilton's ability to generate substantial profits. However, despite these positive results, Hilton's stock experienced a slight decline of 0.34%.

For the full year of 2024, Hilton reported a diluted EPS of $6.14, surpassing the high end of their guidance. When adjusted for special items, the diluted EPS was $7.12, again exceeding expectations. These figures highlight Hilton's strong financial performance throughout the year. The company's price-to-earnings (P/E) ratio of approximately 56.75 suggests that investors are willing to pay a premium for Hilton's earnings, indicating confidence in the company's future prospects.

Hilton's financial metrics provide further insights into its valuation. The price-to-sales ratio of about 6.02 suggests that investors are paying $6.02 for every dollar of sales. The enterprise value to sales ratio of around 6.96 reflects the company's total valuation relative to its sales. Additionally, the enterprise value to operating cash flow ratio of approximately 40.39 indicates how many times the operating cash flow can cover the enterprise value. These metrics highlight Hilton's strong market position and investor confidence.

Despite its strong financial performance, Hilton faces some challenges. The company has a negative debt-to-equity ratio of -3.45, which may indicate a higher level of debt compared to its equity. This could pose risks in terms of financial stability. Additionally, the current ratio of approximately 0.80 suggests that Hilton may face challenges in covering its short-term liabilities with its short-term assets. These factors highlight the importance of monitoring Hilton's financial health and managing its debt levels effectively.

On Wednesday, April 24, 2024, Hilton Worldwide Holdings Inc. (HLT:NYSE) is set to unveil its quarterly earnings before the market opens. Analysts and investors are keenly awaiting this announcement, with Wall Street estimates predicting an earnings per share (**EPS**) of **$1.42** and revenue expectations hovering around **$2.53 billion** for the quarter. This financial event is not just a routine disclosure but a significant indicator of Hilton's operational and strategic performance, especially considering the company's recent endeavors and market dynamics.

The anticipation surrounding Hilton's earnings report is rooted in the company's performance trends and strategic initiatives. The hospitality giant has been riding a wave of positive momentum, primarily fueled by a robust demand in the leisure sector. This, coupled with a steady recovery in its business transient and group businesses, sets a promising backdrop for the reported quarter. Hilton's strategic partnerships, aimed at expanding its market reach and enhancing service offerings, are also expected to play a crucial role in driving its success during this period. These factors collectively suggest a strong quarter for Hilton, aligning with the optimistic revenue projections of nearly **$2.6 billion**, marking an **11.5% growth** year over year.

The financial community's focus is not just on the numbers but also on the underlying factors contributing to Hilton's performance. The company's ability to surprise investors, as it did in the previous quarter with a **7.7% earnings surprise**, adds an element of anticipation. The Zacks Consensus Estimate for Hilton's EPS stands at **$1.41**, reflecting a significant year-over-year improvement of **13.7%**. This estimate, alongside the projected revenue growth, underscores Hilton's robust position in the competitive hospitality industry. The company's strategic focus on key business segments and partnerships is expected to have contributed significantly to these positive outcomes.

However, it's important to note the slight adjustment in the earnings estimate, which has been revised downward by **0.2%** over the past 30 days to **$1.41**. This adjustment, albeit minor, is a critical aspect for investors to consider. Empirical research has demonstrated a strong correlation between trends in earnings estimate revisions and the short-term price performance of stocks. Such revisions, therefore, warrant close attention as they could signal potential market reactions to Hilton's earnings announcement. The anticipation and speculation surrounding these adjustments highlight the market's sensitivity to any changes in financial projections.

As Hilton Worldwide Holdings Inc. prepares to release its earnings, the market's eyes are on whether the company will meet or exceed the high expectations. The projected increase in earnings and revenue for the quarter ended March 2024 paints a picture of a company on an upward trajectory, benefiting from a strong demand in the leisure sector and strategic business moves. Yet, the slight revision in EPS estimates and the cautious outlook from Zacks Investment Research remind stakeholders of the uncertainties and challenges inherent in the hospitality industry. The upcoming earnings report will not only reveal Hilton's financial health but also provide insights into its strategic direction and operational efficiency, making it a pivotal moment for the company and its investors.

Hilton Worldwide Holdings (NYSE:HLT) announced Q4 results that exceeded expectations for earnings and revenues.

In the fourth quarter, Hilton reported an EPS of $1.68, surpassing the $1.56 forecast. The company's quarterly revenue also slightly beat expectations at $2.61 billion, against a consensus of $2.6 billion.

The hotel operator expanded its portfolio to 7,530 locations, marking a 5.1% growth from the previous year and exceeding the anticipated 7,500 locations.

Hilton's adjusted EBITDA margin saw an improvement to 69.3%, up from 68.6% the year prior, and outdid the 66.9% forecast by analysts. For the 2024 fiscal year, Hilton forecasts an EPS range of $6.80 to $6.94, below the analyst consensus of $7.07.

Hilton Worldwide Holdings (NYSE:HLT) announced Q4 results that exceeded expectations for earnings and revenues.

In the fourth quarter, Hilton reported an EPS of $1.68, surpassing the $1.56 forecast. The company's quarterly revenue also slightly beat expectations at $2.61 billion, against a consensus of $2.6 billion.

The hotel operator expanded its portfolio to 7,530 locations, marking a 5.1% growth from the previous year and exceeding the anticipated 7,500 locations.

Hilton's adjusted EBITDA margin saw an improvement to 69.3%, up from 68.6% the year prior, and outdid the 66.9% forecast by analysts. For the 2024 fiscal year, Hilton forecasts an EPS range of $6.80 to $6.94, below the analyst consensus of $7.07.