Hilton Grand Vacations Inc. (HGV) saw its stock price plummet by 7.80% in pre-market trading on Thursday following the release of its third-quarter earnings report, which fell short of analyst expectations. The company reported adjusted earnings per share of $0.60, significantly below the consensus estimate of $1.01 from six analysts.
The vacation ownership company's disappointing results were primarily attributed to a net deferral of $57 million related to projects under construction, which impacted the adjusted EBITDA. Despite reporting total revenues of $1.3 billion and a 16.7% year-over-year increase in total contract sales to $907 million, the company's net income for the quarter stood at just $25 million. The revenue figure included a substantial net deferral of $99 million, further contributing to the earnings miss.
Despite the weak quarterly performance, Hilton Grand Vacations maintained its full-year 2025 adjusted EBITDA guidance of $1.125 billion to $1.165 billion. The company also highlighted its ongoing share repurchase program, having bought back 3.3 million shares for $150 million during the third quarter. However, these positive factors were overshadowed by the significant earnings shortfall, leading to the sharp decline in stock price as investors reassessed the company's near-term prospects.
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