Hilton Shares Drop as Third-Quarter Earnings Outlook Misses Expectations
Hilton Inc (NYSE:HLT) shares fell more than 2% in pre-market trading after the company reported second-quarter results that met expectations but issued a weaker-than-anticipated third-quarter earnings forecast. The firm's Q2 performance included an EPS of $2.29 and revenue of $3.34 billion, both largely aligned with market forecasts. However, its guidance for diluted EPS in Q3—between $2.28 and $2.34—fell short of the analyst consensus estimate of $2.43. Hilton's development pipeline continued to grow during the quarter, adding 21,600 net new rooms globally as it expanded its total hotel room pipeline by 6% year-over-year. The company also reaffirmed a full-year EPS outlook between $8.89 and $9.01, matching analyst expectations but noting seasonal factors like the FIFA World Cup in Q3 would partially offset fourth-quarter challenges from US midterm elections. Despite strong second-quarter results driven by rising demand trends, investors reacted negatively to the weaker-than-expected third-quarter guidance.
Tickers: $HLT