Hilton Worldwide Holdings Inc., formerly Hilton Hotels Corporation, is an American multinational hospitality company that manages and franchises a broad portfolio of hotels and resorts. Founded by Conrad Hilton in May 1919, the corporation is now led by Christopher J. Nassetta.
Hilton Holding owns different brands around the globe, including: Conrad Hotels & Resorts, Canopy by Hilton, Curio – A Collection by Hilton, Hilton Hotels & Resorts, DoubleTree by Hilton, Embassy Suites Hotels, Hilton Garden Inn, Hampton by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton, Hilton Grand Vacations, Waldorf Astoria Hotels & Resorts, Tru by Hilton, Tapestry Collection by Hilton, and Motto by Hilton.
The company has a $26.147B Market Capitalization and the 52 Week Range for the share price has ranged from $63.76 to $101.14, while the current P/E ratio is 33.6. (The price-earnings ratio, otherwise known as P/E or PER, is the ratio of a company’s share price to the company’s earnings per share).
Comparing the Hilton with its top competitors around the world can give us a better overview of its position in the market. Comparing the past five years of the Hilton share price movement shows it has risen by 77.44%.The Marriott, its main competitor, has risen by 59.80%, while Hyatt and Mandarin Oriental have moved to 18.20% and -13.36% respectively.
The Q3 2019 earnings announcement for HLT will be published on October 23, before the market opens. Hilton plans and projects to increase the company income, focusing mostly on unit expansion plans, its robust loyalty program and strong revenue per available room (RevPAR). This is together with average daily rate (ADR) growth, which will most likely lead the headlines in its Q3 reports. The report will be for the fiscal Quarter ending Sep 2019. According to Zacks Investment Research, based on 8 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.02. The reported EPS for the same quarter last year was $0.77. As you can see in the below chart from Nasdaq.com, the company has reached and even beat the forecasts in past 4 quarter reports.
Revenue can be defined as the amount of money a company receives from its customers in exchange for the sales of goods or services. Revenue is the top line item on an income statement from which all costs and expenses are subtracted to arrive at net income.
Hilton Worldwide Holdings revenue for:
- Quarter ending June 30, 2019, was $2.484B, an 8.42% increase year-over-year.
- Twelve months ending June 30, 2019, was $9.229B, an 8.27% increase year-over-year.
- 2018 was $8.906B, a 9.53% increase from 2017.
- 2017 was $8.131B, a 23.65% increase from 2016.
- 2016 was $6.576B, a 7.81% decline from 2015.
This is illustrated in the below chart from Macrotrade.com:
Technical overview:
Technically there is a very strong support level at $85.95 (three-month low). Negative results and a weak outlook could send the candles under this level in a continuation of the “C” wave of Elliot waves, (see in the chart below). On the other hand, the September high at $97.45 is likely available after R1 at $94.90, if there are better than expected earnings and a positive outlook. $101.13, an all-time high that the asset tested a few months ago (June 30) is the second resistance at the moment, which with a break and hold over $98, will make it the next resistance level in the mid-term.
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Ahura Chalki
Regional Market Analyst
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