What to Look for in Starwood Hotels Earnings

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Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT) is scheduled to report its first-quarter financial results before the markets open on Tuesday. The consensus estimates from Thomson Reuters are calling for $0.58 in earnings per share (EPS) on $1.34 billion in revenue. In the same period of last year, the company posted EPS of $0.65 and revenue of $1.42 billion.

This is another top consumer cyclical play for most analysts. The company is one of the leading hotel and leisure companies in the world, with nearly 1,200 properties in 100 countries and 181,400 employees at its owned and managed properties.

Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences with the following internationally renowned brands: St. Regis, The Luxury Collection, W, Westin, Le Méridien, Sheraton, Four Points by Sheraton, Aloft and Element.

A few analysts weighed in on Starwood prior to the release of the earnings report:

  • Jefferies reiterated a Hold rating.
  • Robert Baird lowered its price target to $81 from $82.
  • Susquehanna upgraded it to Positive from Neutral.
  • Canaccord Genuity reiterated a Buy rating.

So far in 2016, Starwood has outperformed the broad markets, with the stock up nearly 19%. Over the past 52 weeks, the stock is down about 2%.

Shares of Starwood were trading at $82.20 Monday afternoon, with a consensus analyst price target of $81.06 and a 52-week trading range of $56.87 to $87.66.