Hyatt Hotels Corp. Third Quarter Earnings Sneak Peek

Hyatt Hotels Corporation (NYSE:H) will unveil its latest earnings on Wednesday, October 31, 2012. Hyatt Hotels provides hospitality services on a worldwide basis through the management, franchising and ownership of hospitality related businesses.

Hyatt Hotels Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 17 cents per share, a rise of 6.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 19 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 17 cents during the last month. Analysts are projecting profit to rise by 25% compared to last year’s 60 cents.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the second quarter, it reported profit of 24 cents per share against a mean estimate of net income of 23 cents per share. In the first quarter, it missed forecasts by 6 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 11.5% in revenue from the year-earlier quarter to $1 billion.

Stock Price Performance: Between September 27, 2012 and October 25, 2012, the stock price dropped $2.61 (-6.4%), from $40.49 to $37.88. The stock price saw one of its best stretches over the last year between July 25, 2012 and August 7, 2012, when shares rose for 10 straight days, increasing 13.2% (+$4.47) over that span. It saw one of its worst periods between September 27, 2012 and October 5, 2012 when shares fell for seven straight days, dropping 5.1% (-$2.07) over that span.

A Look Back: In the second quarter, profit rose 5.4% to $39 million (24 cents a share) from $37 million (22 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 8.3% to $1.01 billion from $936 million.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 2% in the third quarter of the last fiscal year, 7.8% in the fourth quarter of the last fiscal year and 9.5% in the first quarter before increasing again in the second quarter.

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of more than twofold for the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.36 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.89 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 11.5% to $611 million while assets decreased 8.9% to $1.44 billion.

Analyst Ratings: With eight analysts rating the stock a buy, none rating it a sell and seven rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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