Starwood Hotels & Resorts Worldwide Earnings: Here’s Why the Stock is Up Now

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 4.00%.

Starwood Hotels & Resorts Worldwide Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 12.86% to $0.79 in the quarter versus EPS of $0.70 in the year-earlier quarter.

Revenue: Decreased 3.46% to $1.56 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Starwood Hotels & Resorts Worldwide Inc. reported adjusted EPS income of $0.79 per share. By that measure, the company beat the mean analyst estimate of $0.73. It beat the average revenue estimate of $1.56 billion.

Quoting Management: Frits van Paasschen, CEO, said, We exceeded our profit expectations — despite slower revenue growth and exchange rate headwinds — thanks to SG&A cost control and good margin performance at Owned and Managed hotels. The global recovery continues. Tight supply in North America and Europe is the order of the day, with virtually no new high-end hotels coming on stream. Our occupancies in Europe are close to 72%. In North America, they reached 76%, the highest Starwood has ever reported. In China, our hotels significantly outperformed the competition, demonstrating the value our brands bring to our hotel owners, even in soft market conditions.

Key Stats (on next page)…

Revenue increased 1.49% from $1.54 billion in the previous quarter. EPS increased 3.95% from $0.76 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 $0.65 to a profit $0.62. For the current year, the average estimate has moved up from a profit of $2.66 to a profit of $2.81 over the last ninety days.

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