Shares of Hyatt Hotels Corp. (H) were ahead by more than 5% in recent trading, following the company's strong second-quarter results.
The company said it earned $112 million, or 70 cents a share, up from $39 million, or 24 cents, a year earlier. Excluding one-time items, adjusted earnings rose to 43 cents a share from 24 cents.
Revenue climbed 7.7% to $1.09 billion.
Analysts were looking for per-share earnings of 30 cents on revenue of $1.07 billion.
Revenue per available room, a widely watched performance metric, grew 7.1% at comparable hotels. Occupancy increased to 79.8% from 79.2% and average daily rates moved up by 6.3%.
Owned and leased hotel operating margin expanded to 27.8% from 26.3%.
The company forecast $250 million in capital expenditures for the fiscal year.
FBR Capital Market's Nikhil Bhalla notes that after three misses in the past year, the Street's estimates have become more conservative. While he isn't surprised that markets are reacting positive to the report, he thinks it is still too early to tell if the results are sustainable, as he sees potential softness for group bookings and volatility for China and India properties.
Hyatt is up 16% in the past year.
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