Shares of Hilton Grand Vacations Inc. (HGV) plummeted 7.80% in pre-market trading on Thursday following the release of its third-quarter earnings report. The vacation ownership company's results fell short of analyst expectations, primarily due to significant project deferrals affecting its bottom line.
Hilton Grand Vacations reported adjusted earnings per share (EPS) of $0.60 for the third quarter, substantially missing the consensus estimate of $1.01 from six analysts. The company's net income stood at $25 million, with adjusted EBITDA reaching $245 million. However, these figures were significantly impacted by a net deferral of $57 million related to projects under construction, which weighed heavily on the company's profitability.
Despite the earnings miss, Hilton Grand Vacations showed strong operational performance in some areas. Total contract sales increased by 16.7% year-over-year to $907 million, driven by higher tours and VPG (Volume Per Guest). The company also reported total revenues of $1.3 billion, although this figure was affected by a net deferral of $99 million. In a show of confidence, HGV reiterated its full-year 2025 adjusted EBITDA guidance range of $1.125 billion to $1.165 billion, emphasizing its strong operational performance supporting long-term cash flow generation. The company also continued its share repurchase program, buying back 3.3 million shares for $150 million during the quarter.
Comments