Timeshare vacation company Hilton Grand Vacations (NYSE: HGV) will be reporting earnings this Thursday before the bell. Here’s what to look for.
Hilton Grand Vacations missed analysts’ revenue expectations last quarter, reporting revenues of $1.33 billion, up 3.8% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ adjusted operating income estimates. It reported 722,874 members, flat year on year.
Is Hilton Grand Vacations a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Hilton Grand Vacations’s revenue to grow 9.8% year on year, improving from its flat revenue in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Hilton Grand Vacations has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Hilton Grand Vacations’s peers in the consumer discretionary - travel and vacation providers segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Hilton delivered year-on-year revenue growth of 9%, missing analysts’ expectations by 1.4%, and American Airlines reported revenues up 10.8%, topping estimates by 0.6%. American Airlines traded up 5.2% following the results.
Read our full analysis of Hilton’s results here and American Airlines’s results here.
There has been positive sentiment among investors in the consumer discretionary - travel and vacation providers segment, with share prices up 12.5% on average over the last month. Hilton Grand Vacations is up 20.7% during the same time and is heading into earnings with an average analyst price target of $55.10 (compared to the current share price of $45.45).
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