Hilton Stock Up on Q4 Earnings & Revenue Beat, RevPAR Climbs Y/Y

Hilton Worldwide Holdings Inc. HLT reported exceptional fourth-quarter 2024 results, wherein adjusted earnings and total revenues surpassed the Zacks Consensus Estimate and grew year over year.Find the latest earnings estimates and surprises on Zacks Earnings Calendar.The company's performance was backed by strong demand for leisure travel, with continued growth in business transient and group travel. These robust trends supported growth in occupancy and average daily rate (ADR), thus, resulting in increased revenue per available room (RevPAR). Furthermore, favorable net unit growth compared with last year and the continuous efforts in expanding the portfolio globally added to the uptrend.The company expects the robust travel trends to continue into 2025, positioning it to deliver strong results in the near term.Following the release, HLT stock gained 1.4% in Thursday’s pre-market trading session. Investors’ sentiments might have been boosted by the company’s strong expectations for the first quarter and 2025.Hilton Worldwide Holdings Inc. Price, Consensus and EPS Surprise Hilton Worldwide Holdings Inc. price-consensus-eps-surprise-chart | Hilton Worldwide Holdings Inc. QuoteHilton’s Q4 in DetailHilton reported adjusted earnings per share (EPS) of $1.76, which beat the Zacks Consensus Estimate of $1.68 by 4.8%. In the year-ago quarter, it reported an adjusted EPS of $1.68.Total revenues of $2.783 billion also topped the consensus mark of $2.748 billion by 1.3% and grew 6.7% on a year over year basis.The quarter’s franchise and licensing fees improved year over year to $642 million from $601 million . Our estimate for the metric was $645 million.Base and other management fees declined year over year to $82 million from $95 million, while incentive management fees were up 11.7% to $86 million. Our model projected base and other management and incentive management fees to be $87.6 million and $64 million, respectively.Owned and leased hotels’ revenues were $333 million compared with the year-ago quarter’s level of $320 million. We expected the metric to be $344.6 million.HLT’s RevPAR and Adjusted EBITDAIn the quarter, the system-wide comparable RevPAR grew 3.5% year over year (on a currency-neutral basis), owing to an increase in occupancy and ADR.Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $858 million, up 6.8% year over year. Our estimate for adjusted EBITDA was $825.9 million.Hilton’s 2024 HighlightsThe company reported full-year total revenues of $11.17 billion, up from $10.24 billion reported in 2023. System-wide comparable RevPAR (on a currency-neutral basis) grew 2.7% year over year, backed by 0.8% growth in occupancy and 1.6% rise in ADR.Net income during the year increased to $1.54 billion from $1.15 billion reported a year ago. Adjusted EBITDA increased year over year by 11% to $3.43 billion.General and administrative moved up 1.7% year over year to $415 million. Adjusted EPS for the full year was $7.12, up from $6.21 reported in 2023.Balance Sheet of HLTAs of Dec. 31, 2024, Hilton’s total cash and cash equivalents were $1.376 billion, up from $875 million reported in 2023-end. As of the fourth quarter, the long-term debt outstanding (excluding all finance lease liabilities) was $11.1 billion, up from $9.1 billion (excluding all finance lease liabilities and other debt of Hilton's consolidated variable interest entities) reported at the end of 2023. There are no debt maturities until April 2027, except $500 million of outstanding senior notes due May 2025.In 2024, the company repurchased 13.3 million of its common stock for $215.09 per share. It paid dividends worth $150 million during the year, bringing total shareholders’ return to $3 billion (including share repurchases).Management declared a quarterly cash dividend of 15 cents per share, which will be payable on March 28, 2025, to its shareholders of record as of Feb. 21.Hilton’s Business UpdatesIn the fourth quarter of 2024, Hilton opened 171 new hotels, with a total of 22,600 room additions. This brought room openings to 98,400 for 2024, resulting in 7.3% year-over-year net unit growth.During the quarter, the company debuted in Bonaire and Paraguay, thereby expanding its presence in 140 countries and territories. It also expanded its portfolio in the Asia Pacific market, surpassing 1,000 hotels in the region.The company is optimistic about the new openings in 2025, especially concerning the luxury portfolio. It plans to re-open the Waldorf Astoria New York, along with the Waldorf Astoria Costa Rica Punta Cacique, Waldorf Astoria Shanghai Qiantan, Waldorf Astoria Osaka, Waldorf Astoria Morocco Rabat Sale, Conrad Hamburg and Conrad Athens.As of Dec. 31, 2024, Hilton's development pipeline comprised 3,578 hotels representing 498,600 rooms across 118 countries and territories, including 25 countries and territories where it had no existing hotels. For 2025, HLT expects net unit growth to be in the range of 6-7%.HLT Unveils Q1 & 2025 OutlookFor first-quarter 2025, Hilton anticipates net income to be in the range of $373-$388 million, which compares with $268 million reported in the year-ago quarter. Adjusted EBITDA is expected to be between $770 million and $790 million compared with $750 million reported a year ago. It predicts adjusted EPS between $1.57 and $1.63, up from $1.53 reported in last year’s quarter.For the first quarter of 2025, management forecasts system-wide RevPAR (on a currency-neutral basis) to increase in the band of 2.5-3.5% on a year-over-year basis.For 2025, HLT estimates net income to be in the range of $1.829-$1.858 billion. Adjusted EBITDA is expected to be between $3.7 billion and $3.74 billion. It predicts general and administrative expenses to be in the range of $420-$430 million.Full-year adjusted EPS is projected to be in the range of $7.71-$7.82. The capital return is anticipated to be about $3.3 billion.Management anticipates 2025 system-wide RevPAR (on a currency-neutral basis) to increase 2-3% year over year.HLT’s Zacks Rank & Recent Consumer Discretionary ReleasesHilton currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Adtalem Global Education Inc. ATGE posted better-than-expected results in second-quarter fiscal 2025. Earnings and revenues surpassed the respective Zacks Consensus Estimate and increased year over year, driven by strong enrollment growth and strategic initiatives.Adtalem's operational excellence strategy, Growth with Purpose, has driven six consecutive quarters of enrollment growth while supporting its mission to develop skilled healthcare professionals. Furthermore, strong demand at Chamberlain University and Walden University drove results. ATGE now expects fiscal 2025 adjusted earnings to be in the band of $6.10-$6.30 per share compared with the earlier prediction of $5.75-$5.95.Las Vegas Sands Corp. LVS reported fourth-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and net revenues beating the same. The metrics declined on a year-over-year basis.The company reported solid financial and operational performance at Marina Bay Sands, Singapore and continued recovery in the Macao market. LVS continues to execute its strategic objectives and remains optimistic about achieving industry-leading growth in Macao and Singapore through its ongoing capital investment initiatives. It is optimistic about the introduction of new suite offerings, enhanced service levels and increased tourism spending in Asia.Royal Caribbean Cruises Ltd. RCL reported mixed fourth-quarter 2024 results, with adjusted earnings beating the Zacks Consensus Estimate while the revenues missed the same. Notably, the top and bottom lines increased on a year-over-year basis.The company’s performance during the quarter was driven by stronger pricing on close-in demand and continued strength in onboard revenues. Its diversified fleet offerings, accompanied by its commercial and vacation experiences, are witnessing robust demand trends amid an improving global market backdrop. Thanks to these tailwinds, RCL could achieve its Trifecta goals before the schedule, pointing out the benefits it is realizing from the current improving scenario.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report Las Vegas Sands Corp. 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