Hilton (HLT) shares rose more than 1.7% in premarket trading Wednesday after the hotel and resorts operator unveiled results for the fiscal Q1 2024 and hiked outlook for the full fiscal 2024.
For FQ1 2024, Hilton posted earnings per share (EPS) of $1.53, topping consensus estimates of $1.42.
Revenue came in at $2.57 billion, also above the projected $2.53 billion.
Hilton's adjusted Ebitda margin improved significantly, reaching 70.4% compared to 67.8% year-over-year, and beating the estimate of 68.4%.
Looking ahead to FY2024, Hilton has updated its EPS guidance to range between $6.89 and $7.03, an increase from the previously projected range of $6.80 to $6.94. However, this hiked guidance still falls short of the consensus forecast of $7.12.
The company also raised its forecast for adjusted Ebitda, now expecting it to be between $3.38 billion and $3.43 billion, up from the prior range of $3.33 billion to $3.38 billion, and slightly above the market estimate of $3.37 billion.
"We are pleased to report a strong first quarter with bottom line results meaningfully exceeding our expectations, further demonstrating the power of our resilient, fee-based business model and strong development story,” said Christopher J. Nassetta, President and CEO of Hilton.
“During the first quarter, system-wide RevPAR increased 2.0 percent as renovations, inclement weather and unfavorable holiday shifts weighed on performance more than anticipated. On the development side, we continued to see great momentum across signings, starts and openings,” he added.