Hyatt Hotels Second Quarter Earnings Sneak Peek

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Hyatt Hotels Corporation (NYSE:H) will unveil its latest earnings on Wednesday, August 1, 2012. Hyatt Hotels provides hospitality services on a worldwide basis through the management, franchising and ownership of hospitality related businesses.

Hyatt Hotels Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 23 cents per share, a decline of 14.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 26 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 23 cents during the last month. Analysts are projecting profit to rise by 21.3% versus last year to 63 cents.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported net income of 3 cents per share versus a mean estimate of profit of 9 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 18 cents.

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Stock Price Performance: Between May 1, 2012 and July 26, 2012, the stock price fell $9.95 (-22.7%), from $43.74 to $33.79. The stock price saw one of its best stretches over the last year between December 19, 2011 and December 27, 2011, when shares rose for six straight days, increasing 9.9% (+$3.46) over that span. It saw one of its worst periods between June 6, 2012 and June 13, 2012 when shares fell for six straight days, dropping 4.1% (-$1.53) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 11.1% in revenue from the year-earlier quarter to $1.04 billion.

Analyst Ratings: There are eight out of 15 analysts surveyed (53.3%) rating Hyatt Hotels a buy. Over the last three months, the stock’s average rating has increased from hold to moderate buy.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 5.3% in the second quarter of the last fiscal year, 2% in the third quarter of the last fiscal year and 7.8% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of more than twofold for the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.89 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

A Look Back: In the first quarter, profit remained level at $10 million (6 cents a share) from the year earlier, missing analyst estimates. Revenue rose 9.5% to $958 million from $875 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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