Back to top

Image: Bigstock

Hyatt to Post Q2 Earnings: What's in Store for the Stock?

Read MoreHide Full Article

Key Takeaways

  • {\"0\":\" Hyatt\'s Q2 EPS estimate is 66 cents, down 56.9% from $1.53 reported in the prior-year quarter.\",\"1\":\"Q2 revenues are estimated at $1.74B, indicating a 2.2% increase from the year-ago quarter\'s figure.\",\"2\":\"Growth in RevPAR, system expansion and non-RevPAR fees likely supported higher gross fee generation.\"}

Hyatt Hotels Corporation (H - Free Report) is scheduled to report second-quarter 2025 results on Aug. 7, before the opening bell.

H’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 20.2%.

Trend in Estimate Revision of H

The Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pegged at 66 cents, indicating a deterioration of 56.9% from $1.53 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at nearly $1.74 billion, implying an increase of 2.2% from the prior-year quarter’s figure.

Hyatt Hotels Corporation Price and EPS Surprise

Hyatt Hotels Corporation Price and EPS Surprise

Hyatt Hotels Corporation price-eps-surprise | Hyatt Hotels Corporation Quote

Let us look at how things have shaped up in the quarter.

Factors Likely to Shape Hyatt’s Quarterly Results

Hyatt’s second-quarter 2025 top line is expected to have increased year over year, driven by solid Revenue Per Available Room (RevPAR) growth and robust development activity. The company is likely to have benefited from net room growth, higher rates and increased occupancy, indicating strong travel demand.

Solid group pace and sustained business transient activities are likely to have aided the company’s RevPAR performance in the second quarter. The company expects stronger RevPAR growth in international markets compared with the United States. Hyatt’s management expects all-inclusive resort bookings in the Americas to increase 7% for the second quarter, indicating stable demand.

Strong contributions from franchise and other fees, as well as base and incentive fees, are expected to have supported Hyatt’s performance in the to-be-reported quarter. Our model predicts revenues from Franchise and other fees to rise 13.2% year over year to $137 million. System expansion, RevPAR growth and increased non-RevPAR fees are expected to have supported the company’s gross fees in the second quarter. Our model predicts the second-quarter gross fees to rise 9.3% year over year to $300.6 million.

Hyatt’s expanding loyalty base, World of Hyatt, alongside strong credit card spend and heightened brand engagement, is expected to have supported commercial performance. Loyalty-driven demand, coupled with strong early-year performance from corporate group business and favorable booking patterns, is expected to have bolstered its occupancy and performance in the second quarter.

However, inflationary pressures, labor cost increases in select markets and the drag from asset sales completed in 2024 might have weighed on Hyatt’s bottom line in the second quarter. Our model predicts second-quarter adjusted EBITDA to decline 2.9% year over year to $298.2 million.

What Our Model Says About H Stock

Our proven model does not conclusively predict an earnings beat for Hyatt this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that is not the case here.

H’s Earnings ESP: Hyatt has an Earnings ESP of -16.79%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

H’s Zacks Rank: The company currently has a Zacks Rank #3.

Stocks Poised to Beat on Earnings

Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.

Carnival Corporation & plc (CCL - Free Report) currently has an Earnings ESP of +0.40% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the to-be-reported quarter, Carnival’s earnings are expected to increase 3.2%. Carnival’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 169.9%.

PENN Entertainment, Inc. (PENN - Free Report) currently has an Earnings ESP of +23.32% and a Zacks Rank of 3.

In the to-be-reported quarter, PENN Entertainment’s earnings are expected to increase 77.8%. PENN Entertainment’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 13.5%.

Monarch Casino & Resort (MCRI - Free Report) currently has an Earnings ESP of +1.19% and a Zacks Rank of 1.

In the to-be-reported quarter, Monarch Casino earnings are expected to increase 7.5% year over year. Monarch Casino’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.1%.

Published in