Why Is Hyatt Hotels Stock Sliding Today?
Portfolio Pulse from Shivani Kumaresan
Hyatt Hotels Corporation (NYSE:H) shares fell after reporting Q1 adjusted EPS below expectations, despite a sales growth of 2% YOY to $1.714 billion, surpassing analyst estimates. The company saw a 5.5% increase in system-wide RevPAR and net rooms growth, but adjusted EBITDA dropped by 5.9%. Hyatt repurchased shares worth $76 million and announced an additional $1 billion stock buyback authorization. The company expects FY24 capital expenditure of $170 million and projects net rooms growth of 5.5% - 6%, with a 3% to 5% increase in RevPAR. Full-year adjusted EBITDA is forecasted between $1.15 billion and $1.19 billion.
May 09, 2024 | 2:54 pm
News sentiment analysis
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NEGATIVE IMPACT
Hyatt Hotels Corporation reported lower than expected Q1 adjusted EPS, but exceeded sales forecasts and announced a significant share repurchase program.
The immediate negative reaction in Hyatt's stock price is likely due to the missed EPS expectations, a key metric for investors. However, the sales growth and aggressive share repurchase program indicate underlying strength and management's confidence in the company's future, which could mitigate some of the negative sentiment in the short term. The detailed financials and outlook provided also suggest a solid growth trajectory, but the initial market reaction to earnings misses often leans negative.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100