Hilton Worldwide (HLT) Tops Q4 EPS by 4c; Offers Q1 EPS Guidance Above Consensus, FY20 EPS Views Below Consensus

Hilton Worldwide (NYSE: HLT) reported Q4 EPS of $1.00, $0.04 better than the analyst estimate of $0.96. Revenue for the quarter came in at $2.37 billion versus the consensus estimate of $2.36 billion.

• Diluted EPS was $0.61 for the fourth quarter and $3.04 for the full year, and diluted EPS, adjusted for special items, was $1.00 for the fourth quarter and $3.90 for the full year
• Net income was $176 million for the fourth quarter and $886 million for the full year
• Adjusted EBITDA was $586 million for the fourth quarter and $2,308 million for the full year
• System-wide comparable RevPAR decreased 1.0 percent and increased 0.8 percent on a currency neutral basis for the fourth quarter and full year, respectively, from the same periods in 2018
• Approved 33,700 new rooms for development during the fourth quarter, growing Hilton's development pipeline to 387,000 rooms as of December 31, 2019, representing 6 percent growth from December 31, 2018
• Opened 18,500 rooms in the fourth quarter, contributing to 58,300 net additional rooms for the full year, which represented approximately 6.6 percent net unit growth from December 31, 2018
• Repurchased 16.9 million shares of Hilton common stock during 2019, bringing total capital return, including dividends, to more than $1.7 billion for the full year
• Launched new lifestyle brand, Tempo by Hilton, in January 2020

Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, "We delivered strong bottom-line results for the fourth quarter and full year. Adjusted EBITDA and diluted EPS, adjusted for special items, exceeded the high end of our guidance as a result of our resilient business model and strong net unit growth. We carry positive momentum into 2020 with expectations of continued strong net unit growth. We are also thrilled with the introduction of Tempo by Hilton, our new lifestyle brand that will provide another platform for growth in the future."

GUIDANCE:

Hilton Worldwide sees Q1 2020 EPS of $0.85-$0.91, versus the consensus of $0.84.

Hilton Worldwide sees FY2020 EPS of $4.08-$4.21, versus the consensus of $4.28.

Hilton's outlook excludes any potential impact of the coronavirus; additional information will be provided on Hilton's conference call referenced below. Share-based metrics in Hilton's outlook include actual share repurchases to date, but do not include the effect of potential share repurchases hereafter.

First Quarter 2020

• System-wide comparable RevPAR is expected to be roughly flat on a currency neutral basis compared to the first quarter of 2019.
• Diluted EPS, before special items, is projected to be between $0.67 and $0.73.
• Diluted EPS, adjusted for special items, is projected to be between $0.85 and $0.91.
• Net income is projected to be between $192 million and $207 million.
• Adjusted EBITDA is projected to be between $520 million and $540 million.
• Management and franchise fee revenue is projected to increase between 3 percent and 5 percent compared to the first quarter of 2019.

Full Year 2020

• System-wide comparable RevPAR is expected to be flat to 1.0 percent growth on a currency neutral basis compared to 2019.
• Diluted EPS, before special items, is projected to be between $3.45 and $3.58.
• Diluted EPS, adjusted for special items, is projected to be between $4.08 and $4.21.
• Net income is projected to be between $979 million and $1,015 million.
• Adjusted EBITDA is projected to be between $2,420 million and $2,470 million.
• Management and franchise fee revenue is projected to increase between 5 percent and 7 percent compared to 2019.
• Contract acquisition costs and capital expenditures, excluding amounts indirectly reimbursed by hotel owners, are expected to be between $175 million and $200 million.
• Capital return is projected to be between $1.6 billion and $2.0 billion.
• General and administrative expenses are projected to be between $390 million and $410 million.
• Net unit growth is expected to be between 6.0 percent and 7.0 percent.

For earnings history and earnings-related data on Hilton Worldwide (HLT) click here.

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