Shares of Hilton Worldwide Holdings Inc. (NYS:HLT) fell 0.8% in premarket trading Thursday, after the hotel chain swung to a second-quarter profit that beat expectations, but revenue that came up short. Net income was $130 million, or 46 cents a share, after a loss of $430 million, or $1.55 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share came to 56 cents, above the FactSet consensus of 40 cents. Revenue climbed 135.6% to $1.33 billion, the most since the first-quarter of 2020, but was below the FactSet consensus of $1.42 billion. Revenue per available room (RevPAR) more than tripled from a year ago to $73.03, above expectations of $67.80. "The broader distribution of vaccinations and the easing of travel and other restrictions have allowed for renewed interest in travel and tourism, with families embarking on long-delayed trips, and businesses scheduling in-person meetings again," said Chief Executive Christopher Nassetta. "While the pace of recovery varies by region, particularly with the uncertainty surrounding coronavirus variants, we expect continued strength in leisure demand and further upticks in business travel to drive continued resurgence in the back half of the year." The stock has rallied 16.4% year to date through Wednesday, while the S&P 500 (S&P:SPX) has advanced 17.2%.
July 29, 2021, 6:14 a.m. EDT