Earnings To Watch: Hilton Grand Vacations (HGV) Reports Q3 Results Tomorrow

StockStory
06 Nov 2024
Earnings To Watch: Hilton Grand Vacations (HGV) Reports Q3 Results Tomorrow

Timeshare vacation company Hilton Grand Vacations (NYSE:HGV) will be reporting results tomorrow before the bell. Here’s what to look for.

Hilton Grand Vacations missed analysts’ revenue expectations by 7.7% last quarter, reporting revenues of $1.24 billion, up 22.6% year on year. It was a disappointing quarter for the company, with a miss of analysts’ operating margin and earnings estimates. It reported 720,069 members, up 37.9% year on year.

Is Hilton Grand Vacations a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Hilton Grand Vacations’s revenue to grow 26.9% year on year to $1.29 billion, a reversal from the 8.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.72 per share.

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 three times over the last two years.

Looking at Hilton Grand Vacations’s peers in the travel and vacation providers segment, some have already reported their Q3 results, giving us a hint as to what we can expect. American Airlines delivered year-on-year revenue growth of 1.2%, meeting analysts’ expectations, and Norwegian Cruise Line reported revenues up 10.7%, topping estimates by 1.4%. American Airlines traded up 2.5% following the results while Norwegian Cruise Line was also up 4.3%.

Read our full analysis of American Airlines’s results here and Norwegian Cruise Line’s results here.

There has been positive sentiment among investors in the travel and vacation providers segment, with share prices up 3.3% on average over the last month. Hilton Grand Vacations is up 5.1% during the same time and is heading into earnings with an average analyst price target of $43.78 (compared to the current share price of $37.67).

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