The U.S. hotel industry is in the middle of a multi-year boom. In recent quarters, many hotel chains reported their strongest results in years, if not in company history.
However, now that the strong dollar is weighing on international revenue streams, can the world’s largest hotel chains keep up the momentum?
Let’s find out by looking at the latest round of earnings announcements.
Hilton Worldwide Holdings Inc (NYSE:HLT)
Q1 revenues climbed 10% year over year to $2.599 billion, topping the $2.41 billion consensus estimate for Hilton Worldwide Holdings Inc (NYSE:HLT). HLT stock’s net income rose 22% to $150 million.
Adjusted earnings per share was 12 cents per share, in line with estimates. Hilton stock rose higher after the report, and HLT is a B-rated (cautious) “buy.”
Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT)
Starwood Hotels & Resorts Worldwide Inc‘s (NYSE:HOT) first-quarter profit was 28% lower than Q1 2014. However, adjusted earnings were 65 cents per share, beating the consensus estimate of 57 cents per share by 14%.
Revenues declined 3% year over year to $1.42 billion, also topping the $1.39 billion consensus sales estimate. While HOT shares surged higher on the sales and earnings surprises, I wouldn’t add Starwood Hotels just yet.
Looking ahead to Q2, HOT management expects earnings of 70 cents per share to 74 cents per share, which is below the Street view of 79 cents per share. HOT is a C-rated “hold.”
Wyndham Worldwide Corporation (NYSE:WYN)
Wyndham Worldwide Corporation‘s (NYSE:WYN) first-quarter net income rose 36% year over year to $122 million, adjusted earnings were $1.03 per share and revenue climbed 6% to $1.26 billion.
Analysts were looking for earnings of 92 cents per share on $1.24 billion. So, Wyndham posted a 12% earnings surprise and a 1.6% sales surprise. WYN stock rose modestly after the report. WYN is a B-rated (cautious) “buy.”
Wynn Resorts, Limited (NASDAQ:WYNN)
For the first quarter, Wynn Resorts, Limited (NASDAQ:WYNN) posted a net loss of $44.6 million, or a loss of 44 cents per share. Excluding special items, adjusted earnings were 70 cents per share, which missed the $1.33 consensus earnings estimate by a wide mile.
Meanwhile, Wynn Resorts’ revenue also fell nearly 29% year over year to $1.09 billion, which also missed the consensus revenue estimate of $1.17 billion. WYNN stock plunged after the announcement. Wynn Resorts stock earns an F-rating “strong sell” in Portfolio Grader.
Marriott International Inc (NASDAQ:MAR)
In just a few hours, Marriott International Inc (NASDAQ:MAR) is scheduled to report its latest quarter results. Analysts are looking for earnings of 70 cents per share on $3.59 billion in revenue. Compared with the year-ago quarter, this translates to 22.8% earnings growth and 9% sales growth.
I expect Marriott to do even better. The consensus earnings estimate has been revised 6% higher in the past 90 days, and Marriott has a strong track record of earnings surprises. MAR is a B-rated “buy” and is currently one of my top hotel stocks.
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
