Casinos & Hotels

Hospitality Earnings in Review

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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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