Boston, MA 05/02/2014 (wallstreetpr) – Shares of the global hospitality company Hyatt Hotels Corporation (NYSE:H) surged to a new one-year high during Thursday’s session. The shares jumped to a new high of $58.04 but settled at $57.82 per share, up almost 3 percent over the previous closing price.
The stock gained due to the strong Q12014 that the $9 billion market capped company reported. The quarter performance not only exceeded expectations, but left investors confident that the company is on the right track for continued positive performance especially in the face of the ongoing consolidation.
The company announced significant income from hotel sales as it moves to give up underperforming assets. The quarter was also supported by encouraging growth in franchise and management fees.
Investors would also be happy to hear that Hyatt Hotels Corporation (NYSE:H) still has significant cash left under its shares repurchase program despite generous repurchases that the company made in the past quarter. With the shares up in recent times, repurchases not only return big money to shareholders, but also improve the value of the remaining shares.
Q1 performance in summary
Hyatt Hotels Corporation (NYSE:H) reported a net profit of $56 million, translating to 36 cents per share. That compared with a net profit of $8 million or 5 cents per share in the comparable quarter a year ago. The adjusted net profit in the latest quarter was up about 43 percent to $20 million or 13 cents per share. That compared with adjusted net profit of $14 million or 9 cents per share in Q12013.
Analysts expected the company to earn 11 cents per share in the latest quarter.
Revenue in the quarter came in at $548 million, up more than 11 percent from $492 million realized in Q12013. According to CEO Mark Hoplamazian, the strong performance in the quarter was helped by strong performance in the food and beverage segment and vibrant U.S. hospitality industry during the quarter.
Shares repurchase
Hyatt Hotels Corporation (NYSE:H) has about $101 million that is remaining for shares repurchase in the current authorization. The spent about $27 million in shares repurchase last month.
