Starwood Hotel & Resorts Earnings: Tops Estimates on Double Digit Revenue Growth

S&P 500 (NYSE:SPY) component Starwood Hotel & Resorts Worldwide Inc. (NYSE:HOT) reported its results for the second quarter. Starwood Hotels & Resorts Worldwide operates in the hotel and leisure business. Its brand names include St. Regis, The Luxury Collection, W and Westin.

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Starwood Hotel & Resorts Worldwide Inc. Earnings Cheat Sheet

Results: Net income for the hotels and motels fell to $122 million (62 cents per share) vs. $131 million (68 cents per share) a year earlier. This is a decline of 6.9% from the year-earlier quarter.

Revenue: Rose 13.5% to $1.62 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Starwood Hotel & Resorts Worldwide Inc. reported adjusted net income of 70 cents per share. By that measure, the company beat the mean estimate of 61 cents per share. It beat the average revenue estimate of $1.56 billion.

Quoting Management: Frits van Paasschen, CEO, said, “We kept up our momentum in the second quarter, despite a choppy global economy. Our REVPAR grew 6.9%, with occupancy over a healthy 71%. Despite the uncertain global environment, we expect the trends we saw in our business for the past quarter to continue through the second half of the year.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 10 cents in the first quarter, by 14 cents in the fourth quarter of the last fiscal year, and by 3 cents in the third quarter of the last fiscal year.

Revenue has increased for four consecutive quarters. Revenue increased 32.4% to $1.72 billion in the first quarter. The figure rose 14.3% in the fourth quarter of the last fiscal year from the year earlier and climbed 9.3% in the third quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 51 cents a share to 52 cents over the last ninety days. The average estimate for the fiscal year is $2.44 per share, a rise from $2.31 ninety days ago.

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

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