Hilton Worldwide Holdings Inc. (HLT) surprised analysts by reporting an adjusted profit for Q3

Hilton Worldwide Holdings Inc. (HLT) surprised analysts by reporting an adjusted profit for Q3

Hilton Worldwide Holdings Inc. (HLT) surprisingly posted adjusted earnings for the third quarter on Wednesday, sending its shares up more than 6 percent in the mid-day trading session today.

The McLean, Virginia-based hotel operator reported a loss of $79 million, or 28 cents per share for the quarter, as compared to earnings of $288 million, or $1 per share in the comparable period, one year ago. The company swung to a loss mainly due to the Covid-19 pandemic that severely hurt its operations. However, on an adjusted basis, the company unexpectedly reported adjusted earnings of 6 cents per share, contrary to a loss of 4 cents per share forecasted by analysts.

Revenue for the quarter came in at $933 million, down 61 percent from the same period last year, and below consensus forecast of $963.5 million. Its comparable revenue per available room plunged nearly 60 percent to $44.95 in the quarter, falling short of $47.50 estimated by analysts.

The company’s CEO Christopher Nassetta said most of Hilton’s properties across the globe are now open and the company is gradually recovering from the affects of pandemic, with occupancy rising over 20 percentage points as compared to the second quarter. Although a complete recovery will take time, Hilton is well set to benefit from the increasing demand and capitalize on growing opportunities, he added.

Hilton (HLT) shares declined sharply to a low of $55 in April following coronavirus outbreak. Its shares managed to recover some of the lost value in the subsequent months but could not reach the pre-pandemic trading price levels. Overall, HLT share price has plummeted nearly 15 percent on year-to-date basis. The 52-week range of the stock is $44.30-$115.48. The company has a market value of $26.586 billion, average trading volume of around 2.71 million, and P/E ratio of 526.76.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn