ORLANDO, Fla. - Hilton Grand Vacations Inc . (NYSE:HGV), a leading global timeshare company, today announced a robust performance for the first quarter of 2024, surpassing analyst expectations for both earnings per share (EPS) and revenue.
The company reported an adjusted EPS of $0.95, which was $0.21 higher than the analyst consensus of $0.74. Total revenue for the quarter reached $1.16 billion, exceeding the $1.12 billion forecast by analysts.
The first quarter results demonstrated a significant increase in revenue, up 23.8% from the $934 million reported in the same period last year. This growth is attributed to a combination of factors, including a $77 million rise in sales revenue and a $30 million increase in financing revenue, bolstered by the addition of Bluegreen Vacations (NYSE:BXG) to the company's portfolio.
Despite the positive revenue and adjusted EPS, Hilton Grand Vacations experienced a net loss attributable to stockholders of -$4 million for the quarter, a decrease from the $73 million net income reported for the same period in 2023. The net loss was influenced by a net recognition of $3 million related to the sales of intervals of a project under construction in Japan during the period.
CEO Mark Wang expressed optimism, noting the company's strong start to the year and the momentum gained throughout the quarter. "Our owner business continued to outperform, and our package activations returned to near-record levels, leaving us optimistic that consumers' intention to travel remains strong," said Wang.
The company is maintaining its full-year 2024 guidance for adjusted EBITDA, excluding deferrals and recognitions, to a range of $1.2 billion to $1.26 billion. This guidance reflects the company's confidence in its business model and its ability to integrate Bluegreen Vacations effectively.
Hilton Grand Vacations' strategy for the remainder of the year includes a focus on integrating Bluegreen Vacations, advancing rebranding plans, and exploring new growth avenues through partnerships, such as the recently announced collaboration with Great Wolf Lodge.
The company's real estate sales and financing segment reported revenues of $687 million, up from $550 million in the prior year, with the segment's adjusted EBITDA reaching $206 million. The resort operations and club management segment also saw growth, with revenues of $360 million and adjusted EBITDA of $134 million.
Hilton Grand Vacations continues to execute its share repurchase plan, having bought back 2.3 million shares for $99 million during the first quarter and an additional 1.1 million shares for $47 million through April 30, 2024.
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