Hilton now anticipates full-year adjusted earnings between $9.07 and $9.13 per share, an increase from its previous forecast. Revenue per available room—the industry’s primary performance indicator—is now expected to rise 4% to 4.5% for the year. Despite this upward revision, the company warned that the final quarter will see earnings land between $2.32 and $2.38 per share, missing the $2.39 consensus estimate tracked by FactSet.
In section Market Quotes
Hilton Raises Annual Outlook Despite Fourth-Quarter Headwinds
A 5.1% premarket slide greeted Hilton Worldwide investors Tuesday after the hotel operator signaled that midterm elections and ongoing conflict in the Middle East will stifle growth through the year's end. While the company raised its full-year guidance, fourth-quarter earnings projections fell short of Wall Street expectations.
This tempered outlook follows a robust third quarter where profit reached $536 million, or $2.37 per share, up from $420 million during the same period last year. Revenue climbed to $3.33 billion, bolstered by higher occupancy rates and a boost from the World Cup. CEO Christopher Nassetta noted that organic growth remains strong, with the company opening 182 hotels totaling 27,000 rooms during the quarter, marking the highest pace of expansion in Hilton's history.
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