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Hilton Posts Better-Than-Expected Q2 Earnings; Shares Gain 3.8%
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Hilton Posts Better-Than-Expected Q2 Earnings; Shares Gain 3.8%

Shares of multinational hospitality firm Hilton Worldwide Holdings, Inc. (HLT) surged 3.8% on Thursday after the company reported better-than-expected earnings for the second quarter of 2021. Headquartered in Virginia, Hilton owns, manages, leases and franchises a portfolio of 6,215 hotels and resorts across 118 nations and territories.

Adjusted earnings per share (EPS) came in at $0.56, beating the Street’s estimate of $0.38. The company had reported a loss of $0.61 in the second quarter of 2020.

Total revenues stood at $1.33 billion, up from $564 million reported in the previous year, marginally missing analysts’ expectations of $1.38 billion.

During the quarter, 25,900 new rooms were approved for development, taking the company’s development pipeline to 401,000 rooms. (See Hilton stock chart on TipRanks)

The President and CEO of Hilton, Christopher J. Nassetta, said, “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 a continued resurgence in the back-half of the year. We are also increasingly optimistic on our development, with net unit growth for the full year expected to be between 5% and 5.5%.”

Following the announcement of the second-quarter results, BMO Capital analyst Ari Klein maintained a Hold rating on the stock with a price target of $125 (7.1% downside potential). The analyst expects the company to report a loss of $0.39 per share in the third quarter.

Overall, the stock has a Moderate Buy consensus based on 3 Buys and 5 Holds. The average Hilton Worldwide Holdings price target of $124.29 implies 7.6% downside potential. Shares of the company have gained 76.7% over the past year.

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