Starwood Hotels & Resorts Earnings: Here’s Why Investors Like These Results

Starwood Hotels & Resorts Worldwide Inc. (NYSE:HOT) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.47%.

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Starwood Hotels & Resorts Worldwide Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 20.63% to $0.76 in the quarter versus EPS of $0.63 in the year-earlier quarter.

Revenue: Decreased 10.26% to $1.54 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Starwood Hotels & Resorts Worldwide Inc. reported adjusted EPS income of $0.76 per share. By that measure, the company beat the mean analyst estimate of $0.53. It beat the average revenue estimate of $1.47 billion.

Quoting Management: Frits van Paasschen, CEO, said, “We had a solid first quarter across all lines of our business. Our management and franchise fees grew strongly, and despite our sale of 11 hotels, earnings at our owned portfolio exceeded last year’s levels, driven by great performance at our North American properties. We grew REVPAR Index as we captured more than our fair share of global growth. And at Bal Harbour, we’ve now sold and closed on approximately 86% of the residences. Overall, the global lodging recovery continues along the trend lines we’ve been seeing. Tight supply is driving higher room rates in North America, and our footprint continues to expand in the growing economies. We are seeing more interest among real estate buyers for both vacation ownership and our owned hotels.”

Key Stats (on next page)…

Revenue increased 0.39% from $1.53 billion in the previous quarter. EPS increased 8.57% from $0.70 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.73 to a profit $0.72. For the current year, the average estimate has moved up from a profit of $2.64 to a profit of $2.66 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)