Hilton Grand Vacations Shares Are Down Today: What's Going On?

Hilton Grand Vacations Inc. HGV shares are trading lower after the company reported fourth-quarter FY23 results.

Sales rose to $1.02 billion from $992 million a year ago, in line with the consensus. Revenues were affected by a net deferral of $21 million in the current period compared to a net deferral of $3 million in the same period in 2022.

Real estate sales and financing segment revenues totaled $591 million, a decrease of $4 million from last year. Total contract sales declined by $62 million to $572 million a year ago in the quarter.

Consolidated Net Owner Growth (NOG) for the year stood at 2.0%. Adjusted EBITDA rose to $270 million from $252 million a year ago, with an adjusted EBITDA margin expanding to 26.5% from 25.4% a year ago.

Adjusted EPS of $1.01 beat the consensus of $0.94.

The company held $589 million in cash and equivalents plus a total restricted cash of $296 million as of December 31, 2023. 

Buyback: In the fourth quarter, the company repurchased 2.7 million shares for $99 million. 

Through February 23, 2024, Hilton Grand bought back around 1.7 million shares for $71 million and currently has shares worth $289 million remaining available under the 2023 repurchase Plan.

Mark Wang, president and CEO, said, “Looking back at 2023, we generated strong tour growth and navigated several challenges through the year to deliver solid adjusted free cash flow, enabling us to return significant cash to shareholders as well as to capitalize on the opportunity to acquire Bluegreen Vacations.“

Outlook: Hilton Grand Vacations expects 2024 Adjusted EBITDA, excluding deferrals and recognitions, to be in a range of $1.2 billion to $1.26 billion, inclusive of the operations of Bluegreen Vacations and expected synergies.

Price Action: HGV shares are down 6.66% at $45.40 on the last check Thursday.

Photo via Wikimedia Commons