Starwood Hotel & Resorts Worldwide Inc. Fourth Quarter Earnings Preview

S&P 500 (NYSE:SPY) component Starwood Hotel & Resorts Worldwide Inc. (NYSE:HOT) will unveil its latest earnings on Thursday, February 2, 2012. Starwood Hotels & Resorts Worldwide operates in the hotel and leisure business. Its brand names include St. Regis, The Luxury Collection, W and Westin.

Starwood Hotel & Resorts Worldwide Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 57 cents per share, a rise of 9.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 56 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 57 cents during the last month. For the year, analysts are projecting net income of $1.79 per share, a rise of 43.2% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 3 cents, coming in at profit of 42 cents a share versus the estimate of net income of 39 cents a share. It marked the fourth straight quarter of beating estimates.

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

Wall St. Revenue Expectations: On average, analysts predict $1.42 billion in revenue this quarter, a rise of 6% from the year ago quarter. Analysts are forecasting total revenue of $5.38 billion for the year, a rise of 6.1% from last year’s revenue of $5.07 billion.

Analyst Ratings: Analysts are bullish on this stock with 14 analysts rating it as a buy, none rating it as a sell and six rating it as a hold.

A Look Back: In the third quarter, the company swung to a profit of $163 million (84 cents a share) from a loss of $6 million (3 cents) a year earlier, beating analyst estimates. Revenue rose 9.3% to $1.37 billion from $1.25 billion.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 10.6% in the second quarter from the year earlier, climbed 9.1% in the first quarter from the year-ago quarter and 15.8% in the fourth quarter of the last fiscal year.

Competitors to Watch: Marriott Intl., Inc. (NYSE:MAR), Hyatt Hotels Corporation (NYSE:H), Wyndham Worldwide Corp. (NYSE:WYN), Choice Hotels Intl., Inc. (NYSE:CHH), Silverleaf Resorts, Inc. (NASDAQ:SVLF), Bluegreen Corporation (NYSE:BXG), Red Lion Hotels Corp. (NYSE:RLH), Gaylord Entertainment Co. (NYSE:GET), and InterContinental Hotels Group PLC (NYSE:IHG).

Stock Price Performance: During November 29, 2011 to January 27, 2012, the stock price had risen $9.53 (21.3%) from $44.83 to $54.36. The stock price saw one of its best stretches over the last year between January 17, 2012 and January 25, 2012 when shares rose for seven-straight days, rising 8.2% (+$4.15) over that span. It saw one of its worst periods between March 30, 2011 and April 11, 2011 when shares fell for nine-straight days, falling 3.3% (-$1.89) over that span.

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

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?