Hospitality Earnings in Review

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By Chris Lange Updated Published
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A few of the key hospitality stocks recently reported their earnings and 24/7 Wall St. is taking a quick review of what has happened in the past week. The three companies we included in this review are Hilton Worldwide Holdings Inc. (NYSE: HLT), HomeAway, Inc. (NASDAQ: AWAY), and Hyatt Hotels Corp. (NYSE: H).

Along with these earnings summaries, we have included recent analyst calls for each of the companies.

Hilton reported its second quarter earnings last week. The hotel chain giant had $0.25 in EPS on $2.92 billion in revenue compared to consensus estimates of $0.22 in EPS on $2.90 billion in revenue. The second quarter from last year had $0.16 in EPS on $2.67 billion in revenue.

HomeAway released its second quarter financial results Tuesday after the markets closed. This company had $0.12 in EPS on $125.8 million in revenue versus consensus estimates of $0.13 in EPS on $123.4 million in revenue. The same quarter from the previous year had $0.15 in EPS on $114.3 million in revenue.

Hyatt reported its second quarter earnings Tuesday before the markets opened. The company had $0.28 in EPS on $1.1 billion in revenue compared to the consensus estimate of $0.45 in EPS. The same period from the previous year had $0.47 in EPS on $1.2 billion in revenue.

Analysts had this to say about Hilton:

  • Goldman Sachs cut the rating to Neutral and removed it from the buy list with a price target to $28.
  • Evercore ISI raised to a Buy rating from Hold and increased the price target to $31 from $30.

A few analysts weighed in on HomeAway:

  • Cowen raised the price target to $34 from $30 with a Market Perform.
  • Deutsche Bank has a Buy rating and cut the price target to $37 from $38.
  • Macquarie has an Outperform rating and raised the price target to $35 from $34.

Hyatt had analysts make a few calls on it after earnings:

  • Baird has an Outperform rating but cut the price target to $63 from $65.
  • Brean Capital has a Buy rating and cut the price target to $67 from $68.
  • Credit Suisse maintained an Underperform rating and cut the price target to $52 from $55.
  • Evercore ISI lowered its rating to Hold from Buy and cut its price target to $60 from $63.
  • SunTrust Robinson has a Buy rating and cut the price target to $70 from $71.

Shares of Hilton were down 1% at $25.89 on Wednesday afternoon. The stock has a consensus analyst price target of $33.45 and a 52-week trading range of $20.72 to $31.60.

Shares of HomeAway were up 7.5% at $30.62 on its 52-week trading range of $25.13 to $36.19. The stock has a consensus analyst price target of $33.50.

Hyatt shares were down 3.5% at $52.20 on its 52-week trading range of $51.26 to $64.52. The stock has a consensus analyst price target of $69.00.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.

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