Hilton Grand Vacations Q2 profit misses on construction deferrals

Overview

• US timeshare operator's Q2 revenue rose yr/yr, but adjusted EPS missed analyst expectations

• Company's results impacted by $28 mln net construction deferral in the quarter

• Company repurchased 3.1 mln shares for $150 mln in Q2

Outlook

• Hilton Grand Vacations reiterates 2026 full-year Adjusted EBITDA guidance of $1.225 bln to $1.265 bln

• Company says healthy tour growth and disciplined cost management support outlook

Result Drivers

• CONSTRUCTION DEFERRALS - Net construction deferral of $28 mln reduced reported revenue and profit for the quarter

• TOUR GROWTH - 6.1% increase in tours contributed to higher segment revenues, per company

• LOWER VPG - Volume per guest fell 8.6%, weighing on contract sales

Company press release: ID:nBw167JWRa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the hotels, motels cruise lines peer group is "buy."

• Wall Street's median 12-month price target for Hilton Grand Vacations Inc is $55.00, about 7% above its July 29 closing price of $51.42

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• July 28 - Hilton Q2 adjusted EPS meets expectations on higher occupancy

• July 29 - MGM Resorts Q2 revenue beats estimates on higher casino gains

• July 28 - Caesars Entertainment Q2 revenue slightly beats estimates on regional growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)