Hyatt Hotels, Corning And Hess Release Earnings
Hyatt Hotels Corporation (NYSE:H) announced third-quarter earnings this morning that topped analysts’ guesstimates by $0.02. The company reported EPS of $0.23, up from an average estimate of $0.21. Revenue for the quarter sits at $1.03 billion, spot on the consensus estimate of $1.03 billion. Operating margins increased 20 basis points in the quarter compared to the same quarter of 2012. Owned and leased hotel operating margins decreased 70 basis points when compared to the third quarter of 2012. Net income was $55 million, or $0.35 per share, compared to net income of $23 million, or $0.14 per share, in the third quarter of 2012. Notable during the quarter was Hyatt’s repurchasing of 702,502 shares of common stock at a weighted average price of $41.28 per share, for a cumulative purchase price of roughly $29 million.
Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt Hotels Corporation, said, “In the third quarter, positive demand trends in the U.S., among both transient and group guests, were accompanied by challenges in certain international markets, including China and India.”
Specialty ceramics and glass company, Corning Incorporated (NYSE:GLW), saw solid third-quarter financial results. Sales were $2.1 billion for the quarter, an increase of 10 percent over the Q3 2012. Net sales (GAAP) were $2.1 billion. Earnings per share were $0.33, which was the fourth consecutive quarter of year-over-year EPS growth, and an increase of 18 percent over last year’s same quarter. GAAP earnings per share came in at $0.28.
“We had excellent third-quarter results. Our strong sales and gross margin performance drove an 18%* improvement in core earnings per share in the quarter. One of our goals over the past 18 months has been to restore positive momentum in our Display Technologies segment. We achieved another important milestone on this front recently by renewing the customer agreements that we first announced last October. The renewals carry through at least 2014,” Wendell P. Weeks, Chairman, Chief Executive Officer and President, said.
Of note during the quarter, the company has seen a recent surge in share price based on the acquisition of the remainder stake of a joint venture with Korean technology firm Samsung (KRX: 005930); Samsung Corning Precision Materials Co. Under the deal, Corning takes full control of the joint venture, and in exchange for its share of the project, Samsung will invest $2.3 billion in Corning, maintaining a 7 percent ownership stake.
Crude oil and gas company, Hess Corp. (NYSE:HES) missed the mark on earnings for Q3 this morning. The company reported EPS of $1.23, which was $0.21 worse than the consensus estimate of $1.44.This is down from $1.64 in last year’s same quarter. Third-quarter 2013 net income decreased to $420 million from $557 million in the third quarter of 2012. Adjusted earnings were $405 million, compared with $420 million for the same quarter last year. Revenue landed at $2.7 billion as opposed to the consensus estimate of $2.63 billion. Of note during the quarter, the company repurchased $500 million in common stock at an average price of $76.60 per share.
Disclosure: The author has no position in the stocks mentioned in this article, and does not intend to initiate any position in the next 48 hours.
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