Earnings Preview: Starwood Hotels & Resorts Worldwide

Starwood Hotels & Resorts Worldwide (HOT) is expected to report Q3 earnings before market open Thursday, October 23, with a conference call scheduled for 10:30 am ET.

Guidance

Analysts are looking for a profit of 53c on revenue of $1.51B. The consensus range is 48c to 57c for EPS, and revenue of $1.39B to $1.58B, according to First Call. In July, Starwood forecast Q3 EPS 52c to 47c and FY08 EPS $2.17 to $2.32 vs. First Call consensus of $2.17.

Analyst Views

On October 15, Thomas Weisel upgraded the Gaming & Lodging sector to Favorable from Neutral. Analyst Jake Fuller believes worse-case earnings scenarios, as well as credit conditions, are already reflected in the stock prices. The casino and lodging industries, as well as many other sectors, have been pressured by the faltering economy, soaring food and gas prices, limited credit, slumping home prices and worries about jobs, consumers remain unnerved and have cut back spending on discretionary items such as vacations.

Goldman Sachs analyst Steven Kent believes hotels will meet Q3 projects but predicts revenue per available room will drop 4% during 200 in the U.S. The analyst believes the companies will be hurt due to project supply growth, weakening business travel trends and broad economic uncertainty.