UPDATE: Hilton Worldwide Posts Downbeat Q4 Earnings, Revenue Beats Views

Hilton Worldwide Holdings Inc. HLT reported weaker-than-expected earnings for the fourth quarter. The McLean, Virginia-based company posted a quarterly profit of $158 million, or $0.16 per share, versus a year-ago profit of $26 million, or $0.03 per share. On an adjusted basis, the company's earnings rose to $0.17 per share, from $0.11 per share. Its total revenue climbed to $2.83 billion from $2.64 billion. However, analysts were expecting earnings of $0.18 per share on revenue of $2.71 billion. Revenue from the ownership segment came in at $1,106 million in the quarter, while Timeshare segment revenue gained 7% to $321 million. Management and franchise fees rose 15% to $383 million in the fourth quarter. Adjusted EBITDA rose 11% to $668 million in the quarter, while Timeshare adjusted EBITDA climbed 11% to $102 million. As of December 31, 2014, Hilton Worldwide had total cash and cash equivalents of $768 million. Christopher J. Nassetta, President & Chief Executive Officer of Hilton Worldwide, said, "2014 was a banner year for Hilton Worldwide. Our fourth quarter and full year results exceeded our expectations for Adjusted EBITDA and fee growth, as did our full year RevPAR growth. Additionally, we continued to increase the value of shareholder equity by further reducing our long-term debt by $1 billion through voluntary prepayments during 2014." Hilton Worldwide projects 2015 adjusted profit of $0.78 to $0.83 per share. For the current quarter, the company expects earnings of $0.10 to $0.12 per share. Hilton Worldwide shares rose 0.28% to close at $28.65 yesterday.