Hilton's softer-than-expected outlook overshadows strong second-quarter results

By Steve Gelsi

Stock falls 2.3% as hotel giant issues adjusted earnings estimate below analysts' mark

Hilton Worldwide Holdings Inc.'s stock fell 2.3% Wednesday after the hotel giant issued a third-quarter outlook for adjusted earnings that fell short of Wall Street analyst estimates.

Hilton (HLT) said it expects earnings for the coming quarter, excluding one-time items, to be between $1.80 and $1.85 a share, below the FactSet consensus estimate of $1.89 a share.

The outlook overshadowed Hilton's stronger-than expected second-quarter adjusted profit of $1.91 a share, ahead of the analyst estimate of $1.86 a share.

Hilton reported second-quarter profit of $421 million, or $1.69 a share, up from $411 million, or $1.55 a share, in the year-ago quarter.

Revenue rose to $2.95 billion from $2.66 billion in the year-ago period and beat the analyst estimate of just under $2.9 billion.

Chief Executive Christopher J. Nassetta said the company turned in a "solid quarter" with a "record" development pipeline.

Hilton said it's forecasting net unit growth of 7% to 7.5% for full-year 2024.

Including Wednesday's moves, Hilton's stock is now up 10.8% in 2024, compared with a 11.5% rise by the S&P 500 SPX.

-Steve Gelsi

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08-07-24 1009ET

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