Earnings Preview: Starwood Hotels

| About: Marriott International, (MAR)

Starwood Hotels (HOT) is expected to report Q4 earnings before the market open on Thursday, February 2 with a conference call scheduled for 10:30 am ET.


Analysts are looking for EPS of 57c on revenue of $1.42B. The consensus range is 52c-63c for EPS, and $1.34B-$1.6B for revenue, according to First Call. After reporting better-than-expected EPS and revenue in Q3, the company gave an outlook of Q4 EPS of 53c-57c and expected REVpar same-store hotels to be up 6%-8%. Investors will listen to hear of any macroeconomic updates, as the NY Times reported earlier this month that hiring in the travel and tourism sector is slowly rebounding. In the past quarter, the company announced new hotels in several emerging markets including China, India, Panama, Bali, and Abu Dhabi. In addition. it said it will open 20 new properties in North America this year.

Analyst Views

Starwood Hotels also returned money to its shareholders recently by increasing its dividend by 67% and approving a $250M share repurchase program. Investors will look to see if there are signs for further stock buyback in the future. Starwood was downgraded to Neutral at BofA/Merrill and the lodging sector was upgraded to Overweight at Wells Fargo.