Core Insights - Hilton Grand Vacations (HGV) reported $1.28 billion in revenue for Q4 2024, a 26% year-over-year increase, but fell short of the Zacks Consensus Estimate by 0.89% [1] - The company's EPS for the same period was $0.49, down from $1.01 a year ago, representing a surprise of -35.53% compared to the consensus estimate of $0.76 [1] Revenue Breakdown - Cost reimbursements revenue was $135 million, exceeding the average estimate of $126.33 million by analysts, marking a 39.2% year-over-year increase [4] - Sales of Vacation Ownership Interests (VOIs), net, totaled $450 million, below the estimated $516.28 million, but still reflecting a 19.7% increase from the previous year [4] - Revenue from rental and ancillary services was $174 million, slightly below the estimate of $176.81 million, with a year-over-year increase of 6.1% [4] - Financing revenue reached $153 million, surpassing the average estimate of $114.52 million, showing an impressive year-over-year growth of 86.6% [4] - Sales, marketing, brand, and other fees generated $166 million, exceeding the average estimate of $142.28 million, with a year-over-year increase of 24.8% [4] Stock Performance - Over the past month, shares of Hilton Grand Vacations have returned -2.3%, compared to a -2.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

分组1 - Hilton Grand Vacations (HGV) reported quarterly earnings of $0.49 per share, missing the Zacks Consensus Estimate of $0.76 per share, and down from $1.01 per share a year ago, representing an earnings surprise of -35.53% [1] - The company posted revenues of $1.28 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.89%, compared to year-ago revenues of $1.02 billion [2] - Over the last four quarters, Hilton Grand Vacations has surpassed consensus EPS estimates only once and topped consensus revenue estimates just once [2] 分组2 - The stock has added about 4% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] - The current consensus EPS estimate for the coming quarter is $0.74 on $1.26 billion in revenues, and for the current fiscal year, it is $3.60 on $5.34 billion in revenues [7] - The Zacks Industry Rank indicates that the Hotels and Motels sector is currently in the bottom 32% of over 250 Zacks industries, which may impact stock performance [8]

Financial Performance - Total revenues for Q4 2024 were $1.284 billion, up from $1.019 billion in Q4 2023, impacted by a net deferral of $90 million[6][4] - Net income attributable to stockholders for Q4 2024 was $20 million, down from $68 million in Q4 2023, with adjusted net income at $49 million compared to $111 million[6][4] - Diluted EPS for Q4 2024 was $0.19, a decrease from $0.62 in Q4 2023, with adjusted diluted EPS at $0.49 compared to $1.01[6][4] - Adjusted EBITDA attributable to stockholders for Q4 2024 was $240 million, down from $270 million in Q4 2023, affected by a net deferral of $49 million[6][4] - Total revenues for the year ended December 31, 2024, reached $4,981 million, up from $3,978 million in 2023, marking a 25.2% increase[68] - Net income attributable to stockholders for the year was $313 million, with quarterly figures of $73 million, $80 million, $92 million, and $68 million respectively[1] - Adjusted EBITDA for the year totaled $1,005 million, with quarterly figures of $218 million, $248 million, $269 million, and $270 million respectively[1] - Total net income for the year ended December 31, 2024, was $60 million, compared to $313 million in 2023, indicating an 81% decrease[94] Cash Flow and Debt - Free cash flow for Q4 2024 was $48 million, compared to $(28) million for the same period in the prior year, with adjusted free cash flow at $883 million[18] - Cash and cash equivalents at the end of the period were $328 million, down from $589 million at the end of 2023, with total cash and cash equivalents including restricted cash at $766 million[71] - The company reported a significant increase in proceeds from non-recourse debt, totaling $944 million in Q4 2024, compared to $400 million in Q4 2023[71] - Net cash provided by operating activities for Q4 2024 was $105 million, compared to no cash provided in Q4 2023, while annual cash provided was $309 million versus $312 million in 2023[73] - As of Dec. 31, 2024, total cash and cash equivalents were $328 million, with total corporate debt of $4.6 billion at a weighted average interest rate of 6.14%[15] Sales and Membership - Total contract sales for Q4 2024 were $837 million, an increase of $265 million compared to Q4 2023[10] - Sales of VOIs, net increased to $450 million in Q4 2024 from $376 million in Q4 2023, representing a 19.6% growth[68] - The company reported a total of approximately 720,000 Club Members, indicating a strong customer base[39] - Total members increased to 723,968 by December 31, 2024, up from 528,789 in 2023, indicating a growth of 37%[84] - Contract sales for the three months ended December 31, 2024, reached $837 million, up from $572 million in 2023, marking a 46.5% increase[78] Profit Margins and Expenses - The company incurred $44 million in acquisition and integration-related expenses in Q4 2024, compared to $26 million in Q4 2023, with annual expenses rising to $237 million from $68 million[76] - The company reported a profit margin of 19.1% for Adjusted EBITDA in Q4 2024, down from 26.5% in Q4 2023, while the annual profit margin was 22.0% compared to 25.3% in 2023[76] - Real estate profit for the year ended December 31, 2024, was $539 million, down from $575 million in 2023[94] - Financing profit for Q4 2024 was $153 million, compared to $82 million in Q4 2023, reflecting an 86.6% increase[68] Future Outlook - The company expects full-year 2025 adjusted EBITDA attributable to stockholders to be in the range of $1.125 billion to $1.165 billion[4] - Forward-looking statements indicate management's expectations regarding future revenues, earnings, and cash flow, subject to various risks and uncertainties[31] - The company plans to continue focusing on strategic opportunities and market expansion in the vacation ownership sector[39] Other Financial Metrics - Interest expense for the year was $178 million, with quarterly expenses of $44 million, $44 million, $45 million, and $45 million respectively[1] - Income tax expense for the year amounted to $136 million, with quarterly expenses of $17 million, $35 million, $44 million, and $40 million respectively[1] - Depreciation and amortization for the year was $213 million, with quarterly figures of $51 million, $52 million, $53 million, and $57 million respectively[1] - Adjusted net income attributable to stockholders for Q4 2024 was $49 million, a decrease of 56% from $111 million in Q4 2023[93] - Adjusted diluted earnings per share for the year ended December 31, 2024, was $2.73, down from $3.63 in 2023, reflecting a 25% decline[93]

Core Insights - Hilton Grand Vacations (HGV) is expected to report quarterly earnings of $0.76 per share, reflecting a decline of 24.8% year over year, while revenues are forecasted to reach $1.3 billion, indicating a growth of 27.1% compared to the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 0.7% in the last 30 days, indicating a reassessment by analysts [2] - Revisions to earnings estimates are crucial for predicting investor actions, as empirical research shows a strong correlation between earnings estimate trends and short-term stock price performance [3] Revenue Projections - Analysts project 'Revenues- Cost reimbursements' to be $126.33 million, a change of +30.2% from the year-ago quarter [5] - The estimated 'Revenues- Sales of VOIs, net' is $516.28 million, reflecting a change of +37.3% year over year [5] - 'Revenues- Rental and ancillary services' are expected to reach $176.81 million, indicating a +7.8% change from the previous year [6] - 'Revenues- Financing' is projected at $114.52 million, showing a significant increase of +39.7% from the year-ago quarter [6] - 'Revenues- Sales, marketing, brand and other fees' are estimated to be $142.28 million, reflecting a +7% change from the previous year [7] Market Performance - Shares of Hilton Grand Vacations have shown a return of -0.5% over the past month, aligning with the Zacks S&P 500 composite's -0.5% change, and the company holds a Zacks Rank 3 (Hold), suggesting it will mirror overall market performance in the near future [8]

Core Viewpoint - Hilton Grand Vacations (HGV) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending December 2024, which could significantly influence its stock price depending on the actual results compared to estimates [1][2]. Earnings Expectations - The consensus estimate for HGV's quarterly earnings is $0.76 per share, reflecting a year-over-year decrease of 24.8%. Revenues are projected to reach $1.3 billion, representing a 27.1% increase from the same quarter last year [3]. Estimate Revisions - Over the past 30 days, the consensus EPS estimate has been revised down by 0.67%, indicating a reassessment by analysts regarding the company's earnings outlook [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for HGV is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +6.73%, suggesting a bullish sentiment among analysts regarding the company's earnings prospects [10][11]. Historical Performance - In the last reported quarter, HGV was expected to post earnings of $0.70 per share but actually reported $0.67, resulting in a surprise of -4.29%. Over the last four quarters, the company has beaten consensus EPS estimates twice [12][13]. Investment Considerations - While HGV appears to be a strong candidate for an earnings beat, it is essential for investors to consider other factors that may influence stock performance beyond just earnings results [14][16].

Core Insights - Hilton Grand Vacations Inc. (HGV) is focusing on diversifying its product portfolio and expanding its global market reach through strategic acquisitions and partnerships [1] - The company's shares have gained 6.2% over the past three months, underperforming the Zacks Consumer Discretionary sector but outperforming the Zacks Hotels and Motels industry and the S&P 500 Index [2] - The Zacks Consensus Estimate for HGV's 2025 earnings per share (EPS) has decreased to $3.55 from $3.63, indicating a year-over-year growth of 3.4% [3] Growth Driving Factors - HGV is engaging in incremental buyouts and partnerships to diversify its product offerings, including the acquisition of Bluegreen Vacations Holding Corporation for approximately $1.6 billion, which adds nearly 200 properties in 14 new regions and eight new states [5] - The company has entered into a 10-year exclusive marketing agreement with Bass Pro Shops to market vacation packages, with sales and marketing operations at 132 locations as of September 30, 2024 [6] - HGV is undergoing rebranding initiatives, with 80% of Diamond properties rebranded in 2024 and plans to rebrand the majority of Bluegreen properties by 2026 [8] Shareholder Value and Financial Performance - HGV has a balanced capital allocation strategy, repurchasing 7.4 million shares for $307 million during the first nine months of 2024 [10] - The company's trailing 12-month return on equity (ROE) is 16.4%, significantly higher than the industry's 5.4%, indicating efficient use of shareholders' funds [11] Challenges - HGV is facing high operating expenses, with total operating expenses increasing to $3.37 billion from $2.50 billion year over year during the first nine months of 2024 [12]

Financial Data and Key Metrics Changes - Reported contract sales were $777 million, and adjusted EBITDA was $276 million, with margins of 22%, in line with expectations [12][30] - Total revenue, excluding cost reimbursements, was $1.13 billion, with adjusted EBITDA margins of 25% [30] - Adjusted EBITDA included $18 million of Bluegreen cost synergies recognized during the quarter, on target with a plan for $100 million of cost synergies within 24 months [30] Business Line Data and Key Metrics Changes - Contract sales in the Real Estate segment were $777 million, with Bluegreen contributing $195 million [31] - Tours for the quarter were nearly 228,000, down approximately 2% from last year's pro forma level [31] - VPG for the quarter was $3,392, demonstrating a 9% increase over 2019 levels [33] Market Data and Key Metrics Changes - Occupancy in the quarter was up about 2 points to 83%, reflecting gains in some mainland markets [15] - Consolidated arrivals for the fourth quarter are ahead of last year, with strong rental demand [15] - The company ended the quarter with 722,000 members and NOG of 1.2% [16] Company Strategy and Development Direction - The company is focused on executing cost synergies from the Bluegreen acquisition and has made organizational changes to improve sales and marketing execution [8][10] - The introduction of HGV Max to Bluegreen members is anticipated to attract new buyers and motivate existing owners to upgrade [10][24] - The company is also progressing with rebranding efforts, aiming to have 80% of Diamond's targeted keys rebranded by year-end [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about operational improvements despite near-term challenges from hurricanes and staffing levels [11][27] - The macro environment presents headwinds for some consumers, but the company is confident in its strategy and execution [11][27] - Management expects a larger impact from hurricanes in the fourth quarter, adjusting guidance to the lower end of the range [44] Other Important Information - The company repurchased 2.8 million shares for $108 million during the quarter, with a commitment to return excess cash to shareholders [43] - The company has a liquidity position of $297 million in unrestricted cash and $308 million available under its revolving credit facility [45] Q&A Session Summary Question: Is the BVH sales integration fully resolved? - Management indicated that the integration is progressing well, with cost savings on track and a new management structure in place [49][51] Question: Is the guidance adjustment solely due to hurricane impacts? - The majority of the adjustment is due to hurricanes, with additional impacts from a hotel workers' strike in Hawaii and delays in launching HGV Max [53] Question: How are local market trends performing? - Local marketing saw a drop-off due to staffing issues, but improvements are expected as staffing levels are being addressed [55][56] Question: How are the largest markets performing? - Las Vegas continues to perform well, while Orlando has seen softening in arrivals and rental rates. Hawaii is recovering but faced challenges from a recent strike [69][71] Question: What is the outlook for new buyers post-election? - Management noted that consumer spending on travel remains strong, with a focus on higher net worth customers to improve VPG [75][76] Question: What is the status of the sales force? - Leadership is in place, and staffing levels are improving, with expectations to be fully staffed by the end of the year [80][84]

Acquisition and Market Presence - The acquisition of Bluegreen Vacations Holding Corporation was completed on January 17, 2024, enhancing the company's portfolio and market presence[141]. - The company completed the acquisition of Bluegreen Vacations Holding Corporation for approximately $1.6 billion on January 17, 2024[183]. Property and Membership - As of September 30, 2024, the company operates approximately 200 properties across the U.S., Europe, the Caribbean, Mexico, Canada, and Asia, with a significant concentration in Florida, Europe, Hawaii, California, South Carolina, Arizona, Virginia, and Nevada[141]. - The company has approximately 722,000 members across its Club offerings, providing access to over 8,000 properties within the Hilton system and various experiential vacation options[141]. Financial Performance - Total revenues for the nine months ended September 30, 2024, were $3,697 million, a 24.9% increase from $2,959 million in the same period of 2023[156]. - Real estate sales and financing revenues for Q3 2024 reached $814 million, a 33.0% increase from $612 million in Q3 2023[156]. - Total segment revenues for Q3 2024 were $1,197 million, up 28.2% from $934 million in Q3 2023[156]. - Net income attributable to stockholders for the three months ended September 30, 2024, was $29 million, a decrease of 68.5% compared to $92 million for the same period in 2023[158]. - The company reported a net income of $32 million for the three months ended September 30, 2024, down 65.2% from $92 million in the same period of 2023[158]. Sales and Marketing Metrics - Contract sales increased to $777 million for the three months ended September 30, 2024, up 28.9% from $603 million in the same period of 2023[170]. - Tour flow increased to 227,790, up from 163,699 in the same period last year, reflecting a significant growth in customer engagement[170]. - Sales revenue for the three months ended September 30, 2024, reached $633 million, a 33.5% increase from $474 million in 2023[171]. Financing and Profitability - Financing propensity for the nine months ended September 30, 2024, was 69%, up from 62% in the same period of 2023[144]. - Financing profit margin is calculated as a percentage of financing profit to financing revenue, indicating the profitability of the financing business[153]. - Financing revenue increased by $30 million to $105 million for the three months ended September 30, 2024, representing a 40.0% growth from $75 million in 2023[173]. - Interest expense for the three months ended September 30, 2024, was $84 million, an increase of 86.7% from $45 million in the same period of 2023[158]. Operational Metrics - Real estate profit margin is considered an important non-GAAP operating measure, reflecting the efficiency of sales and marketing spending[153]. - The management agreements with HOAs provide for a cost-plus management fee, typically earning 10% to 15% of the costs to operate the applicable resort, ensuring predictable revenue streams[147]. - Adjusted EBITDA attributable to stockholders is a key measure used by management to evaluate operating performance, although it is not recognized under U.S. GAAP[150]. Expenses and Costs - Sales and marketing expense increased by 39.8% to $467 million in Q3 2024 from $334 million in Q3 2023[166]. - General and administrative expenses rose by 10.0% to $44 million in Q3 2024 from $40 million in Q3 2023[163]. - Depreciation and amortization expenses for the three months ended September 30, 2024, were $68 million, an increase of 28.3% from $53 million in the same period of 2023[158]. Cash Flow and Investments - Net cash used in investing activities was $1,514 million for the nine months ended September 30, 2024, compared to $47 million for the same period in 2023[189]. - Net cash provided by financing activities was $971 million for the nine months ended September 30, 2024, compared to net cash used of $270 million for the same period in 2023[190]. - The company had $308 million remaining borrowing capacity under the revolver facility as of September 30, 2024[184]. Other Financial Metrics - Adjusted EBITDA for the three months ended September 30, 2024, increased by 14.1% to $307 million from $269 million in the same period of 2023[161]. - Total Adjusted EBITDA attributable to stockholders for the nine months ended September 30, 2024, was $838 million, up 14.0% from $735 million in the same period of 2023[161]. - Real estate profit increased by 4.4% to $167 million in Q3 2024 compared to $160 million in Q3 2023[163].

For the quarter ended September 2024, Hilton Grand Vacations (HGV) reported revenue of $1.31 billion, up 28.3% over the same period last year. EPS came in at $0.67, compared to $0.98 in the year-ago quarter.The reported revenue represents a surprise of +1.48% over the Zacks Consensus Estimate of $1.29 billion. With the consensus EPS estimate being $0.70, the EPS surprise was -4.29%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wal ...

Core Viewpoint - Hilton Grand Vacations (HGV) reported quarterly earnings of $0.67 per share, missing the Zacks Consensus Estimate of $0.70 per share, and down from $0.98 per share a year ago, indicating a negative earnings surprise of -4.29% [1] Financial Performance - The company posted revenues of $1.31 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.48%, compared to $1.02 billion in the same quarter last year [2] - Over the last four quarters, Hilton Grand Vacations has exceeded consensus revenue estimates two times [2] Stock Performance - Hilton Grand Vacations shares have not appreciated since the beginning of the year, contrasting with the S&P 500's gain of 24.3% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.88 on revenues of $1.32 billion, and for the current fiscal year, it is $3.55 on revenues of $5 billion [7] - The trend for estimate revisions ahead of the earnings release has been unfavorable, which may impact future stock performance [6] Industry Context - The Hotels and Motels industry, to which Hilton Grand Vacations belongs, is currently ranked in the bottom 11% of over 250 Zacks industries, suggesting potential challenges ahead [8] - H World Group, another company in the same industry, is expected to report quarterly earnings of $0.69 per share, reflecting a year-over-year increase of +23.2% [9]