Starwood Hotels & Resorts Worldwide Inc. (HOT) is a global hotel and leisure company. Starwood has adopted a strategy to grow beyond its domestic market, and capitalize on the demand for hotels in emerging economies.
The hotelier’s strong developmental pipeline, significant international exposure, asset disposition strategy and shift to a fee-based business model growth has been helping it to record earnings growth in the past few quarters.
Investors should also note the recent earnings estimate revisions for HOT, as the consensus estimate has been almost moving down. However, HOT has a decent history in earnings season. Starwood has delivered positive earnings surprises for four quarters in a row, making for an average earnings surprise of almost 5%.
Currently, HOT has a Zacks Rank #3 (Hold) but that could change following Starwood’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: HOT beats on earnings. Our consensus earnings estimate called for EPS of 77 cents per share, and the company reported EPS of 97 cents instead. Investors should note that these figures take out stock option expenses.
Revenues: HOT reported revenues of $1.49 billion. This missed our consensus estimate of $1.52 billion.
Key Stats to Note: Worldwide Systemwide REVPAR for same-store hotels increased 4.4% year over year. System-wide REVPAR for same-store hotels in North America increased 5.8% in constant dollars.
Worldwide same-store company-operated gross operating profit margins increased 32 basis points year over year. International gross operating profit margins for same-store company-operated properties increased 63 basis points. North American same-store company-operated gross operating profit margins, however, decreased 8 basis points.
The company expects adjusted earnings per share in the range of 53 cents to 57 cents per share in first quarter of 2015.
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