Hilton Worldwide Holdings raised its full-year profit outlook but shares fell 3.4% after third-quarter guidance came in below Wall Street estimates. The hotel operator now expects full-year adjusted earnings per share of $8.89 to $9.01, up from $8.79 to $8.91 previously, with full-year adjusted EBITDA projected at $4.04 billion to $4.08 billion, above the prior range of $4.02 billion to $4.06 billion. However, third-quarter adjusted earnings are forecast at $2.28 to $2.34 per share, below the $2.42 analysts had projected, and adjusted EBITDA is guided to $1.035 billion to $1.055 billion versus estimates of $1.08 billion. Management said third-quarter RevPAR growth of about 4% is expected on a constant currency basis, aided by the World Cup, while the fourth quarter faces a headwind from the US midterm elections. Hilton's development pipeline grew 6% year-over-year to 541,300 rooms, and the company opened 207 hotels during the quarter, adding 21,600 rooms net.
Hilton Worldwide Holdings IncThird-quarter guidance missed analyst estimates, causing shares to fall despite raised full-year outlook.