Starwood Hotels & Resorts Worldwide Beats Analyst Estimates on EPS

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Starwood Hotels & Resorts Worldwide (NYS: HOT) reported earnings on July 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Starwood Hotels & Resorts Worldwide met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share grew. GAAP earnings per share grew.


Margins shrank across the board.

Revenue details
Starwood Hotels & Resorts Worldwide recorded revenue of $1.56 billion. The 21 analysts polled by S&P Capital IQ looked for a top line of $1.57 billion on the same basis. GAAP reported sales were 58% higher than the prior-year quarter's $991.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.79. The 29 earnings estimates compiled by S&P Capital IQ forecast $0.73 per share. Non-GAAP EPS of $0.79 for Q2 were 13% higher than the prior-year quarter's $0.70 per share. (The prior-year quarter included -$0.04 per share in earnings from discontinued operations.) GAAP EPS of $0.71 for Q2 were 15% higher than the prior-year quarter's $0.62 per share. (The prior-year quarter included -$0.04 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 25.8%, much worse than the prior-year quarter. Operating margin was 16.0%, 840 basis points worse than the prior-year quarter. Net margin was 8.8%, 350 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $1.48 billion. On the bottom line, the average EPS estimate is $0.62.

Next year's average estimate for revenue is $6.11 billion. The average EPS estimate is $2.79.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Starwood Hotels & Resorts Worldwide is outperform, with an average price target of $71.34.

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The article Starwood Hotels & Resorts Worldwide Beats Analyst Estimates on EPS originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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