Starwood Hotels & Resorts Worldwide Outruns Estimates Again

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

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Starwood Hotels & Resorts Worldwide beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share shrank significantly.

Gross margins expanded, operating margins shrank, and net margins dropped.

Revenue details
Starwood Hotels & Resorts Worldwide reported revenue of $1.53 billion. The 14 analysts polled by S&P Capital IQ looked for revenue of $1.42 billion. Sales were 14% higher than the prior-year quarter's $1.34 billion.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.71. The 22 earnings estimates compiled by S&P Capital IQ anticipated $0.57 per share on the same basis. GAAP EPS of $0.85 for Q4 were 52% lower than the prior-year quarter's $1.76 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 26.1%, 120 basis points better than the prior-year quarter. Operating margin was 11.2%, 250 basis points worse than the prior-year quarter. Net margin was 10.9%, 1,440 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.33 billion. On the bottom line, the average EPS estimate is $0.37.

Next year's average estimate for revenue is $5.89 billion. The average EPS estimate is $2.25.

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 $59.50.

At the time this article was published 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. 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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