Hilton Worldwide (NYSE: HLT) reported Q2 EPS of $0.70, in-line with the analyst estimate of $0.70. Revenue for the quarter came in at $2.29 billion versus the consensus estimate of $2.47 billion.

Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, "We had another strong quarter with fundamentals driving system-wide RevPAR growth of 4.0 percent, achieving the high end of guidance. This growth coupled with continued net unit growth resulted in Adjusted EBITDA growth of 10 percent, exceeding our expectations."

• Diluted EPS was $0.71 for the second quarter, a 54 percent increase from the same period in 2017, and diluted EPS, adjusted for special items, was $0.70, a 37 percent increase from the same period in 2017
• Net income for the second quarter was $217 million, an increase of 44 percent from the same period in 2017
• Adjusted EBITDA for the second quarter was $555 million, an increase of 10 percent from the same period in 2017, exceeding the high end of guidance
• System-wide comparable RevPAR increased 4.0 percent on a currency neutral basis for the second quarter from the same period in 2017, driven by U.S. RevPAR growth of 3.5 percent and international RevPAR growth of 5.9 percent
• Approved 28,800 new rooms for development during the second quarter, growing Hilton\'s development pipeline to 362,000 rooms as of June 30, 2018, representing 9 percent growth from June 30, 2017
• Opened 17,100 rooms in the second quarter and achieved net unit growth of 15,800 rooms, which was an 18 percent increase from the same period in 2017
• Repurchased 18.5 million shares of Hilton common stock for an aggregate cost of $1.3 billion during the second quarter, including shares repurchased from HNA and Blackstone in connection with their full divestitures of their investments in Hilton
• Returned nearly $1.6 billion to shareholders through July, in the form of share repurchases and dividends

Outlook

Share-based metrics in Hilton\'s outlook include actual share repurchases to date and do not include the effect of potential share repurchases.

Full Year 2018

• System-wide RevPAR is expected to increase between 3.0 percent and 4.0 percent on a comparable and currency neutral basis compared to 2017.
• Diluted EPS, before special items, is projected to be between $2.61 and $2.68.
• Diluted EPS, adjusted for special items, is projected to be between $2.64 and $2.71.
• Net income is projected to be between $804 million and $826 million.
• Adjusted EBITDA is projected to be between $2,070 million and $2,100 million, growing 8 percent to 10 percent, respectively.
• Management and franchise fee revenue is projected to increase between 9 percent and 11 percent compared to 2017.
• Capital expenditures and contract acquisition costs, excluding capital expenditures reimbursed by hotel owners, are expected to be between $175 million and $200 million.
• Cash available for capital return is projected to be between $1.8 billion and $1.9 billion.
• General and administrative expenses are projected to be between $420 million and $440 million.
• Net unit growth is expected to be approximately 6.5 percent.

Third Quarter 2018

• System-wide RevPAR is expected to increase between 2.5 percent and 3.0 percent on a comparable and currency neutral basis compared to the third quarter of 2017.
• Diluted EPS, before special items, is projected to be between $0.71 and $0.76.
• Diluted EPS, adjusted for special items, is projected to be between $0.71 and $0.76.
• Net income is projected to be between $215 million and $229 million.
• Adjusted EBITDA is projected to be between $540 million and $560 million.
• Management and franchise fee revenue is projected to increase between 8 percent and 10 percent compared to the third quarter of 2017.

GUIDANCE:

Hilton Worldwide sees FY2018 EPS of $2.64-$2.71, versus the consensus of $2.72.

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