Hilton Q2 sales plunge as coronavirus cases rise

Yahoo Finance’s Alexis Christoforous, Brian Sozzi, and Emily McCormick break down the earnings report for Hilton.

Video Transcript

ALEXIS CHRISTOFOROUS: Because we got results out this morning from Hilton. We continue to see this pandemic freezing travel, hurting companies like hotels. Sales there plunged in the latest quarter. What can you tell us?

EMILY MCCORMICK: Well, not a huge surprise to see a tough second quarter for Hilton, given that global travel demand was at a standstill in the second quarter of this year, given the pandemic. So taking a look at these losses, we had a second quarter adjusted loss per share at $0.61. That was nearly double the consensus estimate.

And then taking a look at that revenue per available room-- that's closely watched in the hotel industry-- down 81% in the second quarter. The same period last year, it had been up 1.4%. We also saw revenue as a whole down 77% to $564 million.

We do want to give a little bit of a bright note here from Hilton. The company did note that it's US hotels saw occupancy increase 20% from April to June. They also saw Asia-Pacific occupancy improving 15% during that period. So at least starting to see things recover, at least tentatively, as that quarter wore on.

So we do see shares of Hilton down about 1% in premarket trading, of course, adding to those year-to-date losses. Alexis?

ALEXIS CHRISTOFOROUS: All right, thanks a lot, Emily.