Hilton Grand Vacations Posts Mixed Q2 Results, Reaffirms FY23 Outlook

Hilton Grand Vacations Inc HGV reported Q2 FY23 revenues of $1.007 billion, missing the consensus of $1.01 billion.

Real Estate Sales and Financing segment revenues totaled $604 million, an increase from $586 million a year ago.

Resort Operations and Club Management segment revenue were $320 million, up from $303 million a year ago.

Total contract sales increased to $612 million from $617 million a year ago.

Consolidated Net Owner Growth (NOG) for the 12 months ended June 30 was 2.8%.

Adjusted EPS of $0.85 beat the consensus of $0.79.

Adjusted EBITDA was $248 million, down from $273 million a year ago.

The company held $588 million in cash and equivalents.

Repurchase: The company repurchased shares worth $121 million in the quarter. In May, the company's Board of Directors approved a two-year share repurchase plan authorizing the company to repurchase up to an aggregate of $500 million of shares.

As of June 30, 2023, HGV had $522 million of shares remaining under the share repurchase programs.

Outlook: Hilton Grand Vacations reaffirmed FY23 adjusted EBITDA excluding deferrals and recognitions outlook at $1.090 billion - $1.120 billion.

Price Action: HGV shares are trading lower by 4.89% at $43.47 on the last check Thursday.