Hilton reports surprise profit but revenue falls more than forecast; stock edges up

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Shares of Hilton Worldwide Holdings Inc. were indicated up about 0.4% in premarket trading Wednesday, after the hotel operator reported a surprise third-quarter adjusted profit but revenue that fell more than expected. The company swung to a net loss of $79 million, or 28 cents a share, from net income of $288 million, or $1.00 a share in the year-ago period, given the negative effects of the COVID-19 pandemic. Excluding non-recurring items, adjusted earnings per share came to 6 cents, beating the FactSet loss consensus of 4 cents. Revenue dropped 61.0% to $933 million, below the FactSet consensus of $963.5 million, as comparable revenue per available room (RevPAR) fell 59.9% to $44.95, missing expectations of $47.50. “The vast majority of our properties around the world are now open and have gradually begun to recover from the limitations that the COVID-19 pandemic has imposed on the travel industry, with occupancy increasing more than 20 percentage points from the second quarter,” said Chief Executive Christopher Nassetta. “While a full recovery will take time, we are well positioned to capture rising demand and execute on growth opportunities.” The stock has declined 18.3% year to date through Tuesday, while the SPDR Consumer Discretionary Select Sector ETF has climbed 17.3% and the S&P 500 has gained 4.3%.
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