Starwood Hotels & Resorts Worldwide Earnings: Net Income Drops

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 down 1.53%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Starwood Hotels & Resorts Worldwide Inc. Earnings Cheat Sheet

Results: Net income decreased -61.08% to $65 million (70 cents per diluted share) in the quarter versus a net gain of $167 million in the year-earlier quarter.

Revenue: Rose 0.13% to $1.53 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Starwood Hotels & Resorts Worldwide Inc. reported adjusted net income of 70 cents per share. By that measure, the company beat the mean analyst estimate of $0.65. It beat the average revenue estimate of $1.49 billion.

Quoting Management: Frits van Paasschen, CEO, said, “We are happy to report strong results for the fourth quarter and full year 2012. All four key drivers of value performed well. We held our costs in check for the fourth year in a row, grew our footprint with quality hotels and contracts, sustained high REVPAR and occupancies in an uncertain environment, and we realized great value from real estate sales.”

Key Stats (on next page)…

Revenue increased 5.36% from $1.46 billion in the previous quarter. Net income decreased 61.76% from $170 million in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.47 to a profit $0.49. For the current year, the average estimate is a profit of $2.56, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials.)