Hyatt Hotels Shares Jumped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Hyatt Hotels (NYS: H) jumped 10% today after the company released earnings.
So what: Revenue was up 2% to $897 million and fell short of analysts' estimates of $920 million in revenue. But the bottom line was strongm where adjusted earnings per share were $0.16, higher than the $0.07 analysts expected.
Now what: Revenue per available room for the company's owned and leased hotels grew 9.2% and contributed most of the earnings improvement. I'm not sure Hyatt is worth its steep earnings multiple at this point, but if the economy makes a turn for the better, this hotel operator should be a big winner. I'll sit this move out today because I'm just not that impressed with a 2% earnings-growth rate in the hotel business.
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At the time this article was published Fool contributor Travis Hoium has no position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.