Hilton Worldwide (NYSE: HLT) reported Q3 EPS of $0.77, $0.01 better than the analyst estimate of $0.76. Revenue for the quarter came in at $2.25 billion versus the consensus estimate of $2.39 billion.

• Net income available to common stockholders was $64.0 million, or $0.43 per diluted share, compared to $72.3 million, or $0.48 per diluted share
• Home sales revenue of $771.8 million compared to $648.6 million, an increase of 19%--New home deliveries of 1,205 homes compared to 1,111 homes, an increase of 8%--Average sales price of homes delivered of $640,000 compared to $584,000, an increase of 10%
• Homebuilding gross margin percentage of 21.3% compared to 19.5%, an increase of 180 basis points--Excluding interest and impairments and lot option abandonments, adjusted homebuilding gross margin percentage was 24.0%*
• SG&A expense as a percentage of homes sales revenue of 10.7% compared to 10.2%, an increase of 50 basis points
• New home orders of 1,035 compared to 1,268, a decrease of 18%
• Active selling communities averaged 127.3 compared to 129.8, a decrease of 2%--New home orders per average selling community were 8.1 orders (2.7 monthly) compared to 9.8 orders (3.3 monthly)--Cancellation rate increased to 19% compared to 15%
• Backlog units at quarter end of 2,101 homes compared to 2,265, a decrease of 7%--Dollar value of backlog at quarter end of $1.4 billion compared to $1.5 billion, a decrease of 3%--Average sales price of homes in backlog at quarter end of $681,000 compared to $654,000, an increase of 4%
• Ratios of debt-to-capital and net debt-to-net capital of 43.7% and 42.3%*, respectively, as of September 30, 2018
• Repurchased 9,852,009 shares of common stock at a weighted average price per share of $14.14 for an aggregate dollar amount of $139.3 million in the three months ended September 30, 2018
• Ended third quarter of 2018 with total liquidity of $569.9 million, including cash of $83.1 million and $486.8 million of availability under the Company's unsecured revolving credit facility

“TRI Pointe Group turned in another strong operational performance in the third quarter, highlighted by year-over-year home sales revenue growth of 19% and gross margin expansion of 180 basis points,” said TRI Pointe Group Chief Executive Officer Doug Bauer. “Our absorption rates did slow in the quarter as compared to the same period last year, which we feel is a natural reaction by buyers confronted by higher mortgage interest rates and higher home prices. It is important to note that, while not as strong as the same period last year, our overall absorption rate of 2.7 homes per community per month for the quarter was similar to the company's historical third quarter absorption rate in other years.”

Mr. Bauer continued, “We remain focused on the long-term outlook for our company and industry, which we believe is positive given the current strong economic fundamentals and favorable demographic trends. Our company’s leadership is comprised of industry veterans who know how to compete effectively in challenging demand environments. We believe this experience, coupled with our strong balance sheet, product differentiation and market positioning makes TRI Pointe Group well positioned for long-term success.”

GUIDANCE:

Hilton Worldwide sees FY2018 EPS of $2.67-$2.72, versus the consensus of $2.71.

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