Starwood Hotels & Resorts Worldwide Beats on Both Top and Bottom Lines

Starwood Hotels & Resorts Worldwide (NYSE: HOT  ) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Starwood Hotels & Resorts Worldwide beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped.

Gross margins grew, operating margins grew, net margins dropped.

Revenue details
Starwood Hotels & Resorts Worldwide recorded revenue of $1.53 billion. The 17 analysts polled by S&P Capital IQ hoped for a top line of $1.48 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.70. The 29 earnings estimates compiled by S&P Capital IQ predicted $0.65 per share. GAAP EPS of $0.73 for Q4 were 13% lower than the prior-year quarter's $0.84 per share. (The prior-year quarter included $0.05 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 26.6%, 50 basis points better than the prior-year quarter. Operating margin was 15.8%, 20 basis points better than the prior-year quarter. Net margin was 9.3%, 160 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.45 billion. On the bottom line, the average EPS estimate is $0.49.

Next year's average estimate for revenue is $6.08 billion. The average EPS estimate is $2.65.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Starwood Hotels & Resorts Worldwide is outperform, with an average price target of $61.47.

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