Timeshare vacation company Hilton Grand Vacations (NYSE:HGV) will be announcing earnings results tomorrow before market open. Here's what to look for.
Hilton Grand Vacations beat analysts' revenue expectations by 2.8% last quarter, reporting revenues of $1.16 billion, up 23.8% year on year. It was a mixed quarter for the company, with an impressive beat of analysts' members estimates but a miss of analysts' earnings estimates.
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 32.9% year on year to $1.34 billion, improving from the 6.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.05 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 hotels, resorts and cruise lines segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Playa Hotels & Resorts's revenues decreased 5.1% year on year, beating analysts' expectations by 3.1%, and Carnival reported revenues up 17.7%, topping estimates by 1.9%. Playa Hotels & Resorts traded down 1.4% following the results while Carnival was up 12%.
Read our full analysis of Playa Hotels & Resorts's results here and Carnival's results here.
Investors in the hotels, resorts and cruise lines segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. Hilton Grand Vacations is up 1.9% during the same time and is heading into earnings with an average analyst price target of $57.3 (compared to the current share price of $39.36).
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