Earnings To Watch: Hilton (HLT) Reports Q3 Results Tomorrow

Hotel company Hilton (NYSE:HLT) will be reporting earnings tomorrow before the bell. Here’s what to look for.

Hilton met analysts’ revenue expectations last quarter, reporting revenues of $2.95 billion, up 10.9% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ operating margin estimates but underwhelming earnings guidance for the next quarter.

Is Hilton a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Hilton’s revenue to grow 8.7% year on year to $2.91 billion, slowing from the 12.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.84 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Hilton has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.9% on average.

Looking at Hilton’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 15.2%, meeting analysts’ expectations, and Delta Air Lines reported revenues up 1.2%, topping estimates by 2.5%. Carnival traded down 2.8% following the results while Delta Air Lines’s stock price was unchanged.

Read our full analysis of Carnival’s results here and Delta Air Lines’s results here.

Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Hilton is up 5.1% during the same time and is heading into earnings with an average analyst price target of $222.89 (compared to the current share price of $236.09).

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