UPDATE: Starwood Reports Drop In Q4 Profit, Issues Upbeat Forecast

Starwood Hotels & Resorts Worldwide Inc

reported a drop in its fourth-quarter profit. Starwood's quarterly profit fell to $167 million, or $0.85 per share, from $339 million, or $1.78 per share, in the year-ago period. Excluding one-time items, Starwood's earnings from continuing operations came in at $0.71 per share. Its sales surged 14% to $1.53 billion. However, analysts were expecting a profit of $0.57 per share on sales of $1.42 billion. Starwood projects a Q1 profit of between $0.49 and $0.53 per share, versus analysts' estimates of $0.36 per share. Starwood shares gained 1.49% to close at $55.05 yesterday.