Hilton Worldwide Holdings Inc. (HLT) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $387 million, or $ 1.17 a share in the quarter, against a net profit of $814 million, or $2.47 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $233 million, or $0.70 a share compared with $214 million or $0.65 a share, a year ago.
Revenue during the quarter went up marginally by 2.24 percent to $2,920 million from $2,856 million in the previous year period. Gross margin for the quarter expanded 45 basis points over the previous year period to 35.99 percent. Total expenses were 86.10 percent of quarterly revenues, up from 82.81 percent for the same period last year. That has resulted in a contraction of 329 basis points in operating margin to 13.90 percent.
Operating income for the quarter was $406 million, compared with $491 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $751 million compared with $745 million in the prior year period. At the same time, adjusted EBITDA margin contracted 37 basis points in the quarter to 25.72 percent from 26.09 percent in the last year period.
Christopher J. Nassetta, President & Chief Executive Officer of Hilton, said, "For the quarter and full year, performance met our expectations. We also continued to increase our development activity this quarter and surpassed development records this year, approving 106,000 new rooms and opening nearly one hotel per day, contributing to net unit growth of over 45,000 rooms. With completion of the spin-offs, Hilton is a fee-based, capital-efficient and resilient business, with meaningful cash flow that we intend to be very disciplined in returning to stockholders."
For fiscal year 2017, Hilton Worldwide Holdings Inc. forecasts Net income from continuing operations attributable to Hilton stockholders, before special items to be in the range of $547 million to $584 million and projects adjusted net income to be in the range of $547 million to $584 million. The company projects diluted earnings per share to be in the range of $1.65 to $1.75. It projects diluted earnings per share to be in the range of $1.65 to $1.75 on adjusted basis.
For the first-quarter 2017, Hilton Worldwide Holdings Inc. forecasts Net income from continuing operations attributable to Hilton stockholders, before special items to be in the range of $80 million to $98 million and projects adjusted net income to be in the range of $80 million to $98 million. The company projects diluted earnings per share to be in the range of $0.24 to $0.29. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.24 to $0.29.
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