Hilton Grand Vacations Slides On Q4 Earnings Miss

Hilton Grand Vacations Inc HGV reported fourth-quarter FY21 revenues of $838 million, missing the consensus of $856.93 million. Revenues were $212 million for the same period in 2020.
Real estate sales and financing segment revenues totaled $475 million, increasing $359 million from last year.
Total contract sales in Q4 were $521 million, including $188 million contributed by Diamond.
Net Owner Growth (NOG) for the Legacy-HGV business for the 12 months ended December 31, 2021, was 1.6%.
The operating expenses rose 60.2% Y/Y to $684 million. EPS of $0.62 missed the consensus of $0.88.
Adjusted EBITDA for the quarter was $264 million, with an adjusted EBITDA margin of 31.5%.
The company held $695 million in cash and equivalents as of December 31, 2021.
Outlook: Hilton Grand Vacations expects FY22 deferral adjusted EBITDA of $915 million - $935 million.
Price Action: HGV shares traded lower by 5.13% at $49.23 on the last check Tuesday.

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