Earnings Preview: Starwood Hotels

Apr.25.12 | About: Starwood Hotels (HOT)

Starwood Hotels (NYSE:HOT) is expected to report Q1 earnings before the market open on Thursday, April 26 with a conference call scheduled for 10:30 am ET.

Guidance

Analysts are looking for EPS of 52c on revenue of $1.54B. The consensus range is 49c-57c for EPS, and $1.36B-$1.68B for revenue, according to First Call. After reporting better-than-expected Q4 EPS and revenue, the company provided a Q1 EPS outlook of 49c-53c including Bar Harbour and said it remained fiscally cautious, but bullish about the coming year. The company said its 2012 plan assumed a global recovery would continue in 2012, but not as robust as expected in the latter half of 2011. Investors will listen to hear of any macroeconomic updates, as Bloomberg recently said that hotel bookings in the U.S. are on the rise, leading to more jobs in the industry across the country. Smith Travel Research said there has been a 4.1% increase in Q1 bookings from a year ago. The LA Times reported in late March that more than half of Americans will rethink summer travel plans if fuel prices continue to rise. During the quarter, Starwood was raised to investment grade by Moody's and the Telegraph said the company was planning a "major" expansion of its W hotel chain following the success of its first U.K. branch.