On July 28, Hilton declined 3.41% in regular trading, trading at $319.22/share, with turnover of $463 million. The selloff was triggered by the company's Q3 earnings guidance falling well short of Wall Street estimates, overshadowing a solid Q2 beat.
Hilton reported Q2 adjusted EPS of $2.29, slightly above the consensus estimate of $2.27, while revenue came in at $3.34 billion versus the expected $3.33 billion. Q2 net income reached $482 million, with system-wide RevPAR rising 3.9% year-over-year to $125.02, driven by occupancy gains and a 2.5% increase in average daily rate. However, the Q3 adjusted EPS guidance of $2.28-$2.34 landed materially below the Street estimate of $2.43, becoming the primary catalyst for the decline. The company raised full-year adjusted EPS guidance to $8.89-$9.01, still slightly below the FactSet consensus of $9.00. Management noted headwinds from Middle East conflicts pressuring regional RevPAR by high-single to low-double digits, partially offsetting positive momentum from World Cup-related demand and AI-driven mid-scale hotel recovery.
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