HILTON GRAND VACATIONS Reports Q2 Earnings for FY 2023
August 7, 2023
☀️Earnings Overview
HILTON GRAND VACATIONS ($NYSE:HGV) reported its earnings results for the second quarter of fiscal year 2023, ending on June 30, 2023, with a total revenue of USD 1007.0 million – a 6.2% increase from the same period in the previous year. Net income for the quarter was USD 80.0 million, a 9.6% rise from the same quarter of the prior year.
Share Price
HILTON GRAND VACATIONS reported their earnings for the second quarter of FY 2023 on Thursday. The company’s stock opened at $44.5 and closed at $44.2, which was a decrease of 3.4% from the previous closing price of $45.7. Despite these positive signs, the second quarter earnings report revealed a different story. For the quarter, HILTON GRAND VACATIONS reported a decrease in revenue compared to the same period the previous year. This drop in revenue was attributed to a decrease in demand for vacation packages and reduced occupancy in the company’s resorts due to the ongoing pandemic.
The company highlighted its efforts to adjust to the changing situation by tapping into new sources of revenue and implementing cost-efficiency measures. Although the earnings report was disappointing, investors remain optimistic about HILTON GRAND VACATIONS’ future prospects. With travel restrictions gradually lifting and consumer confidence gradually increasing, the company is well-positioned for success as the tourism industry recovers. Despite this setback, investors remain optimistic about the company’s future prospects as demand for vacation packages and occupancy rates in its resorts gradually increase. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for HGV. More…
| Total Revenues | Net Income | Net Margin |
| 4.05k | 381 | 11.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for HGV. More…
| Operations | Investing | Financing |
| 437 | -87 | -416 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for HGV. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.15k | 6.05k | 19.15 |
Key Ratios Snapshot
Some of the financial key ratios for HGV are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 42.2% | 74.6% | 16.4% |
| FCF Margin | ROE | ROA |
| 8.6% | 19.6% | 5.1% |
Analysis
GoodWhale is here to assist you in analyzing the financials of HILTON GRAND VACATIONS. We have conducted an extensive risk assessment and our rating indicates that this is a high risk investment. Our analysis of the income statement and balance sheet reveals two risk warnings that should be carefully considered before investing in this company. Register with GoodWhale to see more detailed information about these potential risks. We are committed to providing you with the best experience and the most accurate information available. More…
Peers
It faces stiff competition from Bluegreen Vacations Holding Corp, Vail Resorts Inc and Blue Ridge Real Estate Co., all of which are major players in the industry.
– Bluegreen Vacations Holding Corp ($NYSE:BVH)
Bluegreen Vacations Holding Corp is a leading vacation ownership company that markets and sells vacation ownership interests and manages resorts in popular leisure and urban destinations. The company has a market cap of 476.19M as of 2022, reflecting its market value and position in the industry. Bluegreen Vacations Holding Corp also has an impressive Return on Equity (ROE) of 38.94%, which is a measure of its profitability and efficiency in using its equity to generate profits. This indicates that the company is well-run and generates high returns for its shareholders.
– Vail Resorts Inc ($NYSE:MTN)
Vail Resorts Inc is a premier mountain resort company operating in the United States. It has a portfolio of 37 mountain resorts and urban ski areas, including Vail, Beaver Creek, Breckenridge, Park City, and Keystone, as well as various lodging properties, retail stores, and ski schools. As of 2022, the company has a market cap of 10.55 billion dollars and a return on equity of 26.14%. This impressive market cap reflects the trust that investors have in the company’s ability to generate returns with its investments. The high return on equity signifies that the company is using its equity efficiently to generate profits.
– Blue Ridge Real Estate Co ($OTCPK:BRRE)
Blue Ridge Real Estate Co is a real estate investment trust that owns, operates, and develops residential real estate in the United States. As of 2022, the company has a market cap of 15.64M and a Return on Equity of 1.36%. The market cap is the total value of the company’s shares and it reflects the overall financial performance and stability of the firm. The return on equity measures the profitability of a company by calculating how much profit it generates with the money shareholders have invested. Blue Ridge Real Estate Co’s market cap and ROE indicate that the company is performing well and generating profits for its shareholders.
Summary
Hilton Grand Vacations reported positive earnings results for the second quarter of fiscal year 2023, achieving a total revenue of USD 1007.0 million and net income of USD 80.0 million. The company saw a 6.2% increase in total revenue and a 9.6% growth in net income compared to the same quarter of the prior year. Despite these impressive results, the stock price for the company moved down on the same day.
This suggests that investors are expecting even greater performance or potential rewards for investing in Hilton Grand Vacations. Analyzing the macro and micro factors such as the competitive landscape, industry trends, and other financial metrics will help investors make informed decisions when investing in this company.
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