Post-Earnings Review - Hilton

LONDON, November 24, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings review on Hilton Worldwide Holdings Inc. (NYSE: HLT). On October 31, 2014, the company reported its financial results for Q3 FY14 (period ended September 30, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Hilton Worldwide Holdings Inc. (Hilton). In Q3 FY14, the company's revenue increased $195 million from Q3 FY13, and its System-wide comparable RevPAR increased 8.4% on a currency neutral basis from Q3 FY13. The President and CEO of Hilton, Christopher J. Nassetta, stated that the company had yet another strong quarter that exceeded its expectations for RevPAR, EPS and adjusted EBITDA growth, and as a result, the company has increased its outlook for the year. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

Hilton's total revenue increased to $2,644 million in Q3 FY14 from $2,449 million in Q3 FY13. The company's Q3 FY14 revenues exceeded Bloomberg analysts' forecasts of $2,616 million. During Q3 FY14, management and franchise fees and other revenues increased 18.6% Y-o-Y to $364 million. Revenues from owned and leased hotels grew 8.1% Y-o-Y to $1,079 million in Q3 FY14. Meanwhile, timeshare segment revenue decreased to $295 million in Q3 FY14, from $302 million in Q3 FY13. The free research on HLT can be downloaded as in PDF format at:

www.Investor-Edge.com/HLTFreeReport

Mr. Nassetta said that the global presence of the company's industry-leading brands continues to increase, with over 12,000 new rooms opening during Q3 FY14. The CEO added that globally, Hilton remains number one in rooms under construction, rooms in the pipeline and room supply.

The company's adjusted EBITDA increased by over 13% Y-o-Y to $645 million in the reported quarter, from $570 million in Q3 FY13. Net income attributable to Hilton stockholders narrowed to $183 million, or $0.19 per share, in Q3 FY14, from $200 million, or $0.22 per share, in Q3 FY13. Hilton's reported net income came in better than Bloomberg analysts' forecasts of $168 million, or $0.17 per share. Sign up and read the free analyst's notes on HLT at:

www.Investor-Edge.com/HLT-24112014

For Q4 FY14, Hilton expects its System-wide RevPAR to increase between 6.0% and 7.0% on a comparable and currency neutral basis compared to Q4 FY13. Adjusted EBITDA is expected to be between $630 million and $650 million. Further, adjusted diluted EPS is projected between $0.16 and $0.18.

For FY14, System-wide RevPAR is expected to increase between 6.0% and 7.0% on a comparable and currency neutral basis, with ownership segment RevPAR expected to increase between 5.0% and 6.0% on a comparable and currency neutral basis as compared to FY13. Adjusted EBITDA is projected to be between $2,470 million and $2,490 million. Further, adjusted diluted EPS is projected to be between $0.69 and $0.71.

For FY15, system-wide RevPAR is expected to increase in the range of 5.0% to 7.0% on a comparable and currency neutral basis compared to FY14. The company's global system of rooms is expected to expand by 40,000 rooms to 45,000 rooms on a net basis, a 6.0% to 7.0% increase in managed and franchised rooms. Visit Investor-Edge and access the latest research on HLT at:

www.Investor-Edge.com/HLTEarningsCoverage

Stock Performance  

On the day of the earnings release, October 31, 2014, Hilton's stock ended the session at $25.24, up 0.92%. Although the stock has moved both ways since then, the gains have outweighed the losses so far. On the last close, Friday, November 21, 2014, it finished at $25.52, 0.28% above its previous day's closing price of $25.45, after vacillating between $25.50 and $25.76. A total of 5.63 million shares were traded, which was above its three months average volume of 5.47 million shares. Over the last one month and since the start of this year, the company's shares have advanced 6.29% and 14.70%, respectively. However, the stock has fallen by 0.35% in the previous three trading sessions. Shares in Hilton closed above their 50-day and 200-day moving averages of $24.40 and $23.43, respectively. Furthermore, the stock traded at a PE ratio of 73.12 and has a Relative Strength Index (RSI) of 60.01.

Sneak Peek to Corporate Insider Trading 

In the last one month, there were 40 selling transactions made by 21 insiders. Between October 30, 2014 and November 10, 2014, a total of 310.60 million shares worth $7,609.86 million have been disposed at an average price of $24.50 per share. From November 06, 2014 to November 10, 2014, Blackstone Group L.P. and HLT A23 Breh VI Holdco LLC, the 10% owners in Hilton, sold 90.87 million and 80.31 million shares, respectively, at an average price of $24.50 per share. Additionally, during the same period, Blackstone Capital Partners V L.P., a 10% stake holder in Hilton Worldwide Holdings, disposed 79.49 million shares at an average price of $24.50 per share. Complimentary in-depth research on HLT is available at:

www.Investor-Edge.com/HLTInsiderTrading

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