PK Earnings Prediction
The chart below shows how PK performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PK sees a +0.62% change in stock price 10 days leading up to the earnings, and a +3.71% change 10 days following the report. On the earnings day itself, the stock moves by -0.24%. This data can give you a slight idea of what to expect for the next quarter's release.
PK Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
649.00M
-4.42%
-5.39%
Gross Margin
56.55%
2.95%
-2.04%
Operating Margin
12.33%
-1.52%
-25.14%
Net Margin
8.78%
92.12%
-10.13%
EPS
0.26
100.00%
-13.33%
No Data Available
PK Earnings Analysis
Park Hotels & Resorts Inc. Common Stock Corporation (PK.N) Earnings Conference Call
Positive
RevPAR Year-over-Year Growth: 1. RevPAR Growth: Park Hotels & Resorts achieved a 3.3% year-over-year growth in RevPAR for Q3 2024, with a notable 4.0% growth when adjusted for disruptions from Hurricane Helene and labor strikes.
Group Revenue Surge: 2. Strong Group Demand: Group revenue increased nearly 13% year-over-year to approximately $110 million, with a 9% increase in group revenue pace for 2024, indicating robust future demand.
RevPAR Growth Highlights: 3. Significant RevPAR Increases in Key Markets: RevPAR growth was 22% at the Bonnet Creek Complex in Orlando, driven by strong group production, and 130% growth at Casa Marina Resort in Key West due to renovations.
Asset Sale Proceeds: 4. Successful Asset Sales: The sale of non-core assets, including the Hilton La Jolla Torrey Pines, generated over $40 million in gross proceeds, enhancing the company's balance sheet and allowing for share repurchases.
Strong Operational Efficiency: 5. High EBITDA Margin: The hotel adjusted EBITDA margin for Q3 was 27.2%, reflecting strong operational efficiency despite challenges, with hotel revenue reaching $625 million during the quarter.
Negative
Hawaii RevPAR Decline: 1. Declining RevPAR in Hawaii: RevPAR for the two Hawaii hotels decreased by 8% in Q3, impacted by labor strikes and severe weather events, including three storms in August that disrupted travel from Japan.
Labor Strikes Impact RevPAR: 2. Negative Impact from Labor Strikes: Labor negotiations and strikes at key properties, particularly Hilton Hawaiian Village, resulted in a 240 basis point drag on RevPAR, which would have been approximately 5.7% instead of the reported 3.3%.
October RevPAR Performance: 3. Flat October RevPAR Growth: October's RevPAR growth is expected to be flat to down 1%, primarily due to ongoing labor strikes and hurricane disruptions, indicating a slowdown in performance compared to previous months.
Operating Cost Concerns: 4. Increased Operating Costs: The company anticipates a 4% to 5% increase in expenses for 2025, which could pressure EBITDA growth if not matched by sufficient RevPAR increases.
Guidance Uncertainty: 5. Uncertainty in Full-Year Guidance: Due to ongoing labor negotiations and their potential impact on operating results, the company is unable to update its full-year 2024 RevPAR and EBITDA guidance, indicating a lack of clarity in financial expectations.
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PK Earning Call Sentiment
Park Hotels & Resorts Inc. (PK) Q3 2024 Earnings Call Transcript
1.0x
00:00
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PK.N
-0.31%Positive
The earnings call reflects positive financial performance with strong RevPAR growth in key markets and a solid cash dividend plan. Despite challenges like labor strikes and weather impacts, management remains optimistic about long-term demand, particularly in Hawaii. The Q&A highlighted confidence in future group bookings and continued operations during labor negotiations. Share repurchases and non-core asset sales also bolster financial health. Given the market cap, the stock is likely to experience a positive reaction, although not strongly so due to some uncertainties around short-term guidance.