Hilton Stock Is Jumping Post Q1 Results - Here's Why

Hilton Worldwide Holdings Inc HLT reported first-quarter FY24 sales growth of 12.2% year-on-year to $2.573 billion, beating the analyst consensus estimate of $2.550 billion.

Franchise and licensing fees revenue rose 12.4% Y/Y, and the owned and leased hotels revenue grew 2.8%.

The occupancy rate for the quarter was 67.7% in the U.S., 64.9% in Europe and 73.6% in Middle East & Africa. In total, the system-wide occupancy rate was 67.2%.

On a currency-neutral basis, System-wide comparable RevPAR increased 2% Y/Y. In the first quarter, Hilton added 16,800 rooms to its system.

The operating margin was 20.7%, and operating income for the quarter increased 7% to $533 million.

Adjusted EBITDA of $750 million increased 17% Y/Y. Adjusted EBITDA margin expanded 260 basis points to 70.4%.

Adjusted EPS of $1.53 beat the analyst consensus of $1.42.

Outlook: Hilton raised its FY24 adjusted EPS outlook from $6.80 – $6.94 to $6.89-$7.03 versus the Street view of $7.12.

Hilton expects system-wide comparable RevPAR on a currency neutral basis to increase 2%-4% for FY24. The company expects an FY24 capital return of approximately $3.0 billion.

HLT sees second quarter adjusted EPS of $1.80-$1.86 versus an estimate of $1.88; system-wide comparable RevPAR growth on a currency neutral basis of 2%-4%.

HLT Price Action: HLT shares are trading higher by 4.41% at $205.74 premarket Wednesday.

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