Starwood Hotel & Resorts Worldwide Inc. Earnings: Net Income Sinks

S&P 500 (NYSE:SPY) component Starwood Hotel & Resorts Worldwide Inc. (NYSE:HOT) reported its results for the fourth quarter. Starwood Hotels & Resorts Worldwide operates in the hotel and leisure business. Its brand names include St. Regis, The Luxury Collection, W and Westin.

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Starwood Hotel & Resorts Worldwide Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Starwood Hotel & Resorts Worldwide Inc. fell to $167 million (85 cents per share) vs. $339 million ($1.78 per share) a year earlier. This is a decline of 50.7% from the year earlier quarter.

Revenue: Rose 14.2% to $1.53 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Starwood Hotel & Resorts Worldwide Inc. reported adjusted net income of 71 cents per share. By that measure, the company beat the mean estimate of 57 cents per share. It beat the average revenue estimate of $1.42 billion.

Quoting Management: Frits van Paasschen, CEO said, “We grew worldwide systemwide REVPAR by 5.8%, delivering strong fourth quarter EBITDA and EPS. Each of our nine brands performed well, driving REVPAR index gains for the tenth quarter in a row. Our strong and growing presence in the emerging markets fueled almost 21,000 room openings in 2011, the most in our Company’s history. These openings bring our five year total to 389 new hotels. In other words, over one-third of our 1,090 hotels are newly opened. When combined with a full year REVPAR increase of 7.4%, our fees jumped 14.3%, a strong acceleration from 2010’s growth rate. As we look to 2012, it is shaping up to be another record year of room additions and strong REVPAR growth.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the third quarter, by 4 cents in the second quarter, and by 4 cents in the first quarter.

Revenue has risen the past four quarters. Revenue increased 9.3% to $1.37 billion in the third quarter. The figure rose 10.6% in the second quarter from the year earlier and climbed 9.1% in the first quarter from the year-ago quarter.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the first quarter of the next fiscal year has risen to 36 cents per share from 35 cents. The average estimate for the fiscal year has seen a bump from $1.78 per share sixty days ago to $1.79.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com