Latest news with #HiltonGrandVacations
Yahoo
15-05-2025
- Business
- Yahoo
HGV Q1 Earnings Call: Process Improvements Offset Flat Revenue Amid Macro Uncertainty
Timeshare vacation company Hilton Grand Vacations (NYSE:HGV) fell short of the market's revenue expectations in Q1 CY2025, with sales flat year on year at $1.15 billion. Its non-GAAP profit of $0.09 per share was 82.2% below analysts' consensus estimates. Is now the time to buy HGV? Find out in our full research report (it's free). Revenue: $1.15 billion vs analyst estimates of $1.24 billion (flat year on year, 7.6% miss) Adjusted EPS: $0.09 vs analyst expectations of $0.53 (82.2% miss) Adjusted EBITDA: $180 million vs analyst estimates of $236.4 million (15.7% margin, 23.8% miss) Operating Margin: 5.2%, in line with the same quarter last year Free Cash Flow was $185 million, up from -$374 million in the same quarter last year Members: 724,617, in line with the same quarter last year Market Capitalization: $3.84 billion Hilton Grand Vacations reported flat revenue growth for Q1, as operational initiatives and efficiency improvements partially offset a challenging macroeconomic landscape. Management emphasized enhanced transaction rates, value-per-guest (VPG) gains, and the ongoing integration of Bluegreen Vacations as central to maintaining momentum. CEO Mark Wang noted, 'Our direct marketing approach, diversified product range, and dedicated member base have provided us with a buffer against broader market volatility.' Looking forward, leadership maintained its annual profitability outlook, focusing on actions within its control to manage consumer uncertainty. Mark Wang highlighted continued investments in lead generation, digital marketing, and flexible financing options as key strategic priorities. He acknowledged that external factors, such as tariffs and changing consumer sentiment, could influence results but stated that the company is proactively adapting to mitigate potential headwinds. Management identified several business levers that contributed to performance, with a focus on operational efficiency and new product initiatives. The quarter's deviations from analysts' expectations were largely attributed to macroeconomic volatility and ongoing integration efforts. Tour Efficiency Initiatives: Hilton Grand Vacations continued to refine its guest qualification and scoring models, prioritizing higher-quality tour prospects. These efforts boosted close rates and average transaction values, particularly among existing owners. Bluegreen Integration Progress: The integration of Bluegreen Vacations yielded $89 million in cost synergies so far, with management confident in reaching its $100 million target by year-end. The launch of HGV Max to Bluegreen members drove strong value-per-guest (VPG) growth, especially among legacy Bluegreen owners. Product and Marketing Enhancements: The company is accelerating digital marketing integration, launching new owner-focused campaigns, and rolling out enhancements to its HGV Max product, scheduled for later this year. These actions are designed to drive incremental member engagement and encourage additional stays. Flexible Financing Rollout: Management is unifying and simplifying its financing programs across brands, aiming to reduce friction at the sales table and incentivize purchases of specific inventory types. The new standardized approach is expected to drive additional cash flow at the point of sale. Geographic and Segment Strength: Strong performance was noted across multiple regions, including Hawaii, New York, and Orlando, with no major geographic concentration of weakness. Legacy owner channels outperformed, while new buyer segments showed moderate improvement, aided by targeted marketing and qualification strategies. Management's outlook centers on sustaining operational momentum through process improvements, lead generation, and product enhancements, while remaining vigilant to macroeconomic risks. The main themes driving future results are efficiency gains and resilient member engagement. Enhanced Member Engagement: Continued investment in new features for HGV Max and incremental benefits are expected to further increase member satisfaction and retention, supporting recurring revenue streams. Tour Flow and Quality Focus: The company aims for tour flow growth in the coming quarters, with ongoing refinement of guest scoring and qualification models to target higher-propensity buyers. Macro and Consumer Headwinds: Leadership remains cautious about potential consumer confidence erosion, inflationary pressures, and external policy changes, such as tariffs, which could impact booking trends and sales conversions. Brandt Montour (Barclays): Asked why Hilton Grand Vacations has not seen the booking softness reported by other leisure companies. CEO Mark Wang cited strong owner prepayments and detailed data on future arrivals as key advantages. Ben Chaiken (Mizuho Securities): Probed the company's balance sheet optimization and the securitization potential of its receivables. CFO Dan Mathewes explained that most receivables are securitizable, with a small portion being less attractive due to lower credit quality. Ben Chaiken (Mizuho Securities): Also inquired about the success of upgrading Bluegreen owners. Mark Wang highlighted that Bluegreen owners saw value-per-guest growth of over 40%, outperforming other segments. Patrick Scholes (Truist Securities): Requested updates on tour flow and VPG expectations. Mark Wang indicated tour flow should grow later in the year, with VPG growth expected in the mid-to-high single digits if current conditions persist. Stephen Grambling (Morgan Stanley): Sought more detail on new flexible financing and product engagement features. Management described the move to standardized financing grids and new initiatives to drive future member engagement and sales. In the quarters ahead, the StockStory team will monitor (1) the pace and impact of newly launched marketing and product initiatives on tour flow and member engagement, (2) the achievement of Bluegreen integration milestones, including property rebrands and cost synergy targets, and (3) trends in consumer booking behavior, particularly if broader economic volatility begins to affect arrivals and package sales. Execution on flexible financing and digital marketing efforts will also be key signposts. Hilton Grand Vacations currently trades at a forward P/E ratio of 11.2×. Should you load up, cash out, or stay put? See for yourself in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
03-05-2025
- Business
- Yahoo
Hilton Grand Vacations First Quarter 2025 Earnings: Misses Expectations
Revenue: US$1.02b (down 1.8% from 1Q 2024). Net loss: US$17.0m (loss widened by 325% from 1Q 2024). US$0.18 loss per share (further deteriorated from US$0.038 loss in 1Q 2024). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue missed analyst estimates by 8.2%. Earnings per share (EPS) was also behind analyst expectations. Looking ahead, revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 10.0% growth forecast for the Hospitality industry in the US. Performance of the American Hospitality industry. The company's shares are up 13% from a week ago. It's necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Hilton Grand Vacations (at least 1 which is a bit unpleasant), and understanding these should be part of your investment process. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
01-05-2025
- Business
- Yahoo
Hilton Grand Vacations (NYSE:HGV) Reports Sales Below Analyst Estimates In Q1 Earnings, But Stock Soars 9.4%
Timeshare vacation company Hilton Grand Vacations (NYSE:HGV) fell short of the market's revenue expectations in Q1 CY2025, with sales flat year on year at $1.15 billion. Its non-GAAP profit of $0.09 per share was 83% below analysts' consensus estimates. Is now the time to buy Hilton Grand Vacations? Find out in our full research report. Revenue: $1.15 billion vs analyst estimates of $1.24 billion (flat year on year, 7.6% miss) Adjusted EPS: $0.09 vs analyst expectations of $0.53 (83% miss) Adjusted EBITDA: $180 million vs analyst estimates of $236.4 million (15.7% margin, 23.8% miss) Operating Margin: 34.1%, up from 5.7% in the same quarter last year Free Cash Flow was $6 million, up from -$374 million in the same quarter last year Members: 725,000, in line with the same quarter last year Market Capitalization: $3.18 billion Spun off from Hilton Worldwide in 2017, Hilton Grand Vacations (NYSE:HGV) is a global timeshare company that provides travel experiences for its customers through its timeshare resorts and club membership programs. A company's long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Luckily, Hilton Grand Vacations's sales grew at an impressive 22.1% compounded annual growth rate over the last five years. Its growth beat the average consumer discretionary company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new property or trend. Hilton Grand Vacations's recent performance shows its demand has slowed significantly as its annualized revenue growth of 11.6% over the last two years was well below its five-year trend. We can better understand the company's revenue dynamics by analyzing its number of members and conducted tours, which clocked in at 725,000 and 174,525 in the latest quarter. Over the last two years, Hilton Grand Vacations's members averaged 19.8% year-on-year growth while its conducted tours averaged 24% year-on-year growth. This quarter, Hilton Grand Vacations missed Wall Street's estimates and reported a rather uninspiring 0.7% year-on-year revenue decline, generating $1.15 billion of revenue. Looking ahead, sell-side analysts expect revenue to grow 11.3% over the next 12 months, similar to its two-year rate. This projection is underwhelming and indicates its newer products and services will not lead to better top-line performance yet. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Hilton Grand Vacations's operating margin has been trending up over the last 12 months and averaged 14.5% over the last two years. Its solid profitability for a consumer discretionary business shows it's an efficient company that manages its expenses effectively. In Q1, Hilton Grand Vacations generated an operating profit margin of 34.1%, up 28.4 percentage points year on year. This increase was a welcome development and shows it was more efficient. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Sadly for Hilton Grand Vacations, its EPS declined by 3.9% annually over the last five years while its revenue grew by 22.1%. However, its operating margin actually expanded during this time, telling us that non-fundamental factors such as interest expenses and taxes affected its ultimate earnings. In Q1, Hilton Grand Vacations reported EPS at $0.09, down from $0.94 in the same quarter last year. This print missed analysts' estimates. Over the next 12 months, Wall Street expects Hilton Grand Vacations's full-year EPS of $1.87 to grow 98.6%. We struggled to find many positives in these results as its revenue, EPS, and EBITDA fell short of Wall Street's estimates. Overall, this quarter could have been better, but the stock traded up 9.4% to $36.77 immediately after reporting. Is Hilton Grand Vacations an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Forbes
21-04-2025
- Business
- Forbes
Personalization Drives Travel Loyalty: Arrivia Exec Gives Insights
Jeff Zotara has spent over a decade helping brands redefine what loyalty means. As Chief Marketing Officer at Arrivia, a global travel technology company powering loyalty platforms for American Express, Hilton Grand Vacations, T-Mobile, and others, he's had a front-row seat to one of the most seismic shifts in consumer behavior: the evolving definition of loyalty itself. What once meant a punch card, or a discount code has now become a rich data exchange between consumer and brand—fueled by AI, personalization, and emotionally resonant experiences. LAS VEGAS, NV - FEBRUARY 10: The Las Vegas Strip and Bellagio Water Fountain Show is viewed after ... More dark on February 10, 2023 in Las Vegas, Nevada. Las Vegas will play host to the NFL's Super Bowl LVIII, taking place next year at the recently constructed Allegiant Stadium, home of the Las Vegas Raiders. (Photo by) Zotara doesn't mince words: 'Consumers are more and more demanding as far as getting to the end of that journey—that decision point—faster, and having those offers be more personalized to them.' Today's loyalty programs leverage AI to create tailored experiences. 'If I'm a member of a loyalty program,' Zotara added, 'that travel platform likely knows what I've searched, when I've searched, and where I want to go. That experience needs to be, and should be, very different than if my mother-in-law took a trip.' Leading brands are already acting on this. Amazon has long set the gold standard for data-driven personalization, and now travel loyalty is catching up. Capital One, for example, offered early access to Taylor Swift tickets—knowing full well it resonated with the passions of their cardholders. 'It's important not to get caught up in the pressure to implement 1:1 or hyper-personalization from day one. Simply start by asking questions you can easily turn into more personal interactions. Ultimately, personalization is a data collection exercise and loyalty programs provide an ideal platform to turn zero-party data into more relevant experiences,' remarked John Pedini, Forrester Analyst. Zotara echoed a concept explored in Marketing to Gen Z: data is currency, and consumers—especially younger ones—know it. 'If we can be more transparent with the consumer,' he said, 'we have found they are more than willing and wanting to have that personalized user experience by providing that data point.' According to a Salesforce report, 79% of consumers are willing to share relevant data in exchange for personalized engagement. But transparency is key. 'A lot of brands used to collect data without really informing people. That doesn't fly anymore.' To explore the generational nuance behind this shift, see Fromm's 'Gen Z Is Not Gen Y On Steroids.' The future of loyalty isn't just about points earned—it's about points redeemed meaningfully. 'You're seeing a lot of this with my American Express Platinum card,' Zotara noted. 'I've got Hulu and Wall Street Journal and Uber credits every month… it reinforces the value of my annual fee across a variety of lifestyle activities.' This shift—toward what McKinsey calls 'lifestyle loyalty'—is driven by consumer demand for flexibility. T-Mobile's loyalty program, for example, gives subscribers benefits outside of mobile service, from travel discounts to streaming offers. The goal? Create emotional connection and frequency of use. 'I saved $1,000 on this trip,' Zotara said, 'and I went to New York City and enjoyed a Broadway play. That feels good. It allows the brand to make a more emotional connection.'
Yahoo
17-04-2025
- Business
- Yahoo
Hilton Grand Vacations to Report First Quarter 2025 Results
ORLANDO, Fla., April 17, 2025--(BUSINESS WIRE)--Hilton Grand Vacations Inc. (NYSE:HGV) announces it will report financial results for the first quarter of 2025 before the financial markets open on Thursday, May 1, 2025, followed by a teleconference at 11 a.m. (ET). Participants are encouraged to listen to the live webcast by logging onto the HGV Investor Relations website at To access the live teleconference via phone, please dial 1-877-407-0784 in the U.S./Canada (or +1-201-689-8560 internationally) approximately 15 minutes prior to the teleconference's start time. In the event of audio difficulties during the call on the toll-free number, participants are advised that accessing the call using the +1-201-689-8560 dial-in number may bypass the source of audio difficulties. A replay will be available beginning three hours after the teleconference's completion through May 15, 2025. To access the replay, please dial 1-844-512-2921 in the U.S. (+1-412-317-6671 internationally) using ID# 13751066. A webcast replay and transcript will be available within 24 hours after the live event at About Hilton Grand Vacations Inc. Hilton Grand Vacations Inc. (NYSE:HGV) is recognized as a leading global timeshare company and is the exclusive vacation ownership partner of Hilton. With headquarters in Orlando, Florida, Hilton Grand Vacations develops, markets, and operates a system of brand-name, high-quality vacation ownership resorts in select vacation destinations. Hilton Grand Vacations has a reputation for delivering a consistently exceptional standard of service, and unforgettable vacation experiences for guests and approximately 720,000 Club Members. Membership with the Company provides best-in-class programs, exclusive services and maximum flexibility for our Members around the world. For more information, visit Follow us on Instagram, Facebook, LinkedIn, X (formerly Twitter), Pinterest, and YouTube. View source version on Contacts Investor Contact:Mark Media Contact:Lauren Sign in to access your portfolio
