Hilton Grand Vacations' Q3 profit misses on net deferral of $57 mln related to projects under construction

Overview

• HGV Q3 total contract sales rise 16.7% yr/yr to $907 mln

• Adjusted EPS of $0.60 misses analyst expectations

• Company repurchased 3.3 mln shares for $150 mln in Q3

Outlook

• Company reiterates full-year 2025 Adjusted EBITDA guidance of $1.125 bln to $1.165 bln

• Company emphasizes strong operational performance supporting long-term cash flow generation

Result Drivers

• CONTRACT SALES GROWTH - Total contract sales increased by 16.7% to $907 mln, driven by higher tours and VPG

• NET DEFERRAL IMPACT - Adjusted EPS affected by a net deferral of $57 mln related to projects under construction

• FINANCING REVENUE INCREASE - Financing revenues rose by $23 mln due to higher average balance and reduced premium amortization

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy."

• Wall Street's median 12-month price target for Hilton Grand Vacations Inc is $50.00, about 11.7% above its October 29 closing price of $44.16

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw8DCYgHa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)