(HLT) - Exceeded analysts' earnings expectations in 12 out of the past 16 quarters by an average margin of 21.8%

Hilton Hotels Corporation (HLT) matched or beat analysts' earnings estimates in 15 out of the past 16 quarters. HLT raised its full-year 2006 revenue and profit guidance in early August. Earnings per share are forecasted to grow 15% over the next 3-5 years. The company's current development pipeline is truly remarkable and represents the largest for any U.S.-based hotel company. HLT has a current dividend yield of 0.55% and a five-year average dividend yield of 0.56%. Full Analysis Hilton Hotels Corporation, along with its subsidiaries, engages in the ownership, management and development of hotels, resorts and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally. The company has over 2,800 hotels and 492,000 rooms in more than 80 countries. HLT exceeded analysts' earnings expectations in 12 out of the past 16 quarters by an average margin of 21.8%. Furthermore, the company matched or beat estimates in 15 out of the past 16. Over the past five years, earnings per share grew 19% and are forecasted to grow 15% over the next 3-5 years, in line with the industry average. HLT missed the second-quarter consensus earnings estimate by a penny when it posted profits of 32 cents per share. However, when compared to the 27 cents posted in the second quarter of 2005, earnings represented an 18.5% year-over-year improvement. Renovations at key properties were cited as the reason behind the company's failure to surprise to the upside. Revenues nearly doubled to $2.2 billion from $1.18 billion a year earlier. The company is expected to release its results for the third quarter prior to the opening of the market on Oct 31. HLT added 55 properties and 8,362 rooms in the quarter and expects to add around 225 hotels and 36,000 rooms to its system in 2006. The company's current development pipeline is quite impressive and represents the largest for any U.S.-based hotel company. More than 700 hotels and 100,000 rooms made up the development pipeline as of June 30, 2006, with approximately 90% of the hotels to be built in the Americas. The company raised full-year 2006 outlook in early August and now projects revenues between $8.10 billion and $8.13 billion. Earnings per share are forecasted to come in between $1.17 and $1.21 and between $1.08 and $1.12, excluding items. The consensus estimate for 2006 currently sits at $1.10. On Jul 21, the Board of Directors declared a quarterly cash dividend of four cents per share. HLT has a current dividend yield of 0.55% and a five-year average dividend yield of 0.56%. HLT is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home