Starwood Hotels & Resorts Worldwide
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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