Hyatt Hotels Corp Earnings Cheat Sheet: Beats the Street Despite Profit Decline

Although Hyatt Hotels Corporation’s (NYSE:H) net income fell in the third quarter from a year earlier, profit exceeded analysts’ expectations. Hyatt Hotels provides hospitality services on a worldwide basis through the management, franchising and ownership of hospitality related businesses.

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Hyatt Hotels Earnings Cheat Sheet for the Third Quarter

Results: Net income for the lodging company fell to $14 million (8 cents per share) vs. $30 million (17 cents per share) a year earlier. This is a decline of 53.3% from the year earlier quarter.

Revenue: Rose 2% to $897 million from the year earlier quarter.

Actual vs. Wall St. Expectations: H reported adjusted net income of 16 cents per share. By that measure, the company beat the mean estimate of 7 cents per share. It fell short of the average revenue estimate of $922.2 million.

Quoting Management: Mark S. Hoplamazian, president and chief executive officer of Hyatt Hotels Corporation, said, “I am very pleased that we completed the acquisition of 19 hotels from LodgeWorks during the quarter and welcomed a number of former LodgeWorks associates as new members of the Hyatt family. This acquisition immediately expands our extended-stay presence, expertise and development capabilities in North America, as well as adds several unique full-service hotels to Hyatt’s portfolio.While it is still early, we are pleased with the initial results. We are also looking forward to the re-branding of all our extended-stay properties to our newly announced Hyatt House brand, which is on track for early 2012.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 12 cents in the second quarter, by 2 cents in the first quarter, and by one cent in the fourth quarter of the last fiscal year.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for fourth quarter has fallen from 15 cents per share to 13 cents. For the fiscal year, the average estimate has moved up from 45 cents a share to 54 cents over the last ninety days.

Competitors to Watch: Starwood Hotels & Resorts Worldwide, Inc (NYSE:HOT), Marriott Intl., Inc. (NYSE:MAR), Silverleaf Resorts, Inc. (NASDAQ:SVLF), ILX Resorts Incorporated (ILXRQ), Morgans Hotel Group Co. (NASDAQ:MHGC), Bluegreen Corporation (NYSE:BXG), Red Lion Hotels Corp. (NYSE:RLH), Gaylord Entertainment Co. (NYSE:GET), InterContinental Hotels Group PLC (NYSE:IHG), and Sonesta Intl. Hotels Corp. (NASDAQ:SNSTA).

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(Source: Xignite Financials)