Benzinga | Feb 16, 2021 10:12AM EST

A Preview Of Hyatt Hotels's Earnings

Hyatt Hotels (NYSE:H) announces its next round of earnings this Wednesday, February 17. Here is Benzinga's everything-that-matters guide for this Wednesday's Q4 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on Hyatt Hotels management projections, analysts predict EPS of $1.3 on revenue of $468.91 million. In the same quarter last year, Hyatt Hotels reported EPS of $0.47 on revenue of $1.27 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Wednesday, earnings would be down 376.6%. Sales would have fallen 63.22% from the same quarter last year. Here is how the Hyatt Hotels's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -1.30 -1.34 -0.15 0.25EPS Actual -1.48 -1.80 -0.35 0.47Revenue Estimate 425.15 M 316.39 M 1.07 B 1.19 BRevenue Actual 399.00 M 250.00 M 993.00 M 1.27 B

Stock Performance

Shares of Hyatt Hotels were trading at $76.41 as of February 15. Over the last 52-week period, shares are down 13.9%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Hyatt Hotels is scheduled to hold the call at 11:30:00 ET and can be accessed here.