Checking In: Hilton Grand Vacations' Q1 Performance Exceeds Estimates, Backs Outlook

Zinger Key Points
  • Hilton Grand Vacations reports Q1 FY24 sales of $1.16 billion, surpassing expectations, driven by real estate sales and financing.
  • Adjusted EBITDA rises to $273 million, with adjusted EPS of $0.95 beating consensus, supported by share buybacks and strong cash reserves.

Hilton Grand Vacations Inc. HGV first-quarter FY24 sales rose to $1.16 billion from $934 million a year ago, beating the consensus of $1.12 billion.

Revenues were affected by a net recognition of $2 million in the current period compared to a net recognition of $4 million in the same period in 2023.

Real estate sales and financing segment revenues totaled $687 million, an increase of $137 million from last year. 

Total contract sales increased by $108 million Y/Y to $631 million, including $136 million contributed by Bluegreen Vacations.

Consolidated Net Owner Growth (NOG) for the legacy HGV-DRI business for the 12 months ended March 31, 2024, was 2%. Member count stood at 718,000.

Adjusted EBITDA rose to $273 million from $218 million a year ago. Adjusted EPS of $0.95 beat the consensus of $0.72.

The company held $355 million in cash and equivalents plus a total restricted cash of $323 million as of March-end.

In the first quarter, the company repurchased 2.3 million shares for $99 million. 

Through April 30, 2024, Hilton Grand bought back around 1.1 million shares for $47 million and currently has shares worth $213 million remaining available under the 2023 repurchase Plan.

Mark Wang, president and CEO, said, “As we look out to the rest of the year, we’re focused on integrating Bluegreen Vacations and advancing our rebranding plans, while engaging with our new partners to explore new avenues for growth. In addition, our recently announced partnership with Great Wolf Lodge supports our commitment to expanding our lead channels and tour flow, while also providing our members with new compelling vacation options.”

Outlook: Hilton Grand Vacations reiterated FY24 guidance for Adjusted EBITDA, excluding deferrals and recognitions, of $1.2 billion to $1.26 billion.

In January 2024, HGV completed the acquisition of Bluegreen Vacations Holding.

Also ReadHilton Grand Vacations To Benefit From Selling Owned Inventory, Analyst Says

Price Action: HGV shares are up 0.90% at $43.79 at the last check Thursday.

Photo via Wikimedia Commons

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesLarge CapNewsGuidanceBriefsStories That Matter
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!