Hilton Grand Vacations' Q2 adjusted profit misses estimates
Overview
Hilton Grand Vacations Q2 contract sales rise 10.2% yr/yr
Adjusted EPS for Q2 misses analyst expectations, per LSEG data
Co repurchased 4.1 mln shares for $150 mln, announces $600 mln buyback plan
Outlook
Company reiterates full-year 2025 Adjusted EBITDA guidance of $1.125 bln to $1.165 bln
Result Drivers
CONTRACT SALES GROWTH - Contract sales increased 10.2% yr/yr to $834 mln, driven by improved execution, per CEO Mark Wang
FINANCING REVENUE - Real Estate Sales and Financing segment revenues rose due to a $24 mln increase in financing revenue, despite a $6 mln decrease in sales revenue
DEFERRED REVENUES - Total revenues of $1.266 bln were impacted by a net deferral, primarily related to projects under construction in Hawaii and Japan
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Adjusted EPS | Miss | $0.54 | $0.76 (6 Analysts) |
Q2 EPS |
| $0.25 |
|
Q2 Net Income |
| $25 mln |
|
Q2 Adjusted EBITDA |
| $233 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy."
Wall Street's median 12-month price target for Hilton Grand Vacations Inc is $48.00, about 5.8% below its July 30 closing price of $50.78
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release: ID:nBw4FNWv2a
