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McLean, Virginia-based Hilton Worldwide Holdings Inc. (HLT) is a hospitality company that manages, franchises, owns, and leases hotels and resorts. Valued at a market cap of $60.4 billion, the company operates a portfolio of luxury, lifestyle, full-service, focused-service, all-suites, timeshare, and economy hotels under various well-known brands. It is expected to announce its fiscal Q3 earnings for 2025 before the market opens on Wednesday, Oct. 22.
Before this event, analysts expect this hospitality company to report a profit of $2.04 per share, up 6.3% from $1.92 per share in the year-ago quarter. The company has a solid trajectory of consistently beating Wall Street’s bottom-line estimates in each of the last four quarters. Its earnings of $2.20 per share in the previous quarter topped the consensus estimates by 7.8%.
For the current fiscal year, ending in December, analysts expect HLT to report a profit of $7.96 per share, up 11.8% from $7.12 per share in fiscal 2024. Its EPS is expected to further grow 13.6% year-over-year to $9.04 in fiscal 2026.
Shares of HLT have gained 11.9% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 17.6% uptick and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 21% return over the same time frame.
On Jul. 23, HLT released its Q2 results. Due to a robust increase in franchise and licensing fees, the company delivered a 6.3% year-over-year growth in its total revenue to $3.1 billion. Moreover, compared to the year-ago quarter, its adjusted EBITDA grew 9.9% to $1 billion, while its adjusted EPS of $2.20 improved 15.2%, exceeding analyst estimates by 7.8%. However, despite these positives, its shares plunged 2.6% that day, likely due to lower system-wide comparable revenue per available room, driven by modest occupancy declines.
Wall Street analysts are moderately optimistic about Hilton’s stock, with a "Moderate Buy" rating overall. Among 23 analysts covering the stock, eight recommend "Strong Buy," three indicate "Moderate Buy," and 12 suggest "Hold.” The mean price target for HLT is $280.69, implying an 8.4% potential upside from the current levels.
