(By Balasesha) Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT) reported a 58.9% drop in quarterly earnings wider loss on early extinguishment of debt despite a rise in revenue. Results exceeded Street's expectations.
Earnings from continuing operations for the fourth quarter were $65 million or $0.33 per share, down from $158 million or $0.80 per share last year. Adjusted earnings per share (EPS) from continuing operations declined to $0.70 from $0.71.
Revenues marginally rose 0.1% to $1.53 billion.
Analysts, on average, polled by Thomson Reuters had expected a profit of $0.65 per share on revenue of $1.49 billion for the fourth quarter.
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Worldwide Systemwide REVPAR for same-store hotels increased 4.1% in constant dollars (3.6% in actual dollars). Systemwide REVPAR for same-store hotels in North America grew 5.2% in constant dollars (5.4% in actual dollars).
Management fees, franchise fees and other income increased 5.1%, while management and franchise revenues grew 11.2%.
Looking ahead into the first quarter, the company projects EPS including Bal Harbour of about $0.51 to $0.54, while Street predicts $0.49. Profit from continuing operations is expected to be about $99 million to $105 million, including Bal Harbour
For the fiscal 2013, the company anticipates EPS including Bal Harbour of about $2.59 to $2.68, while Street predicts $2.64. Depreciation and amortization is expected to be about $300 million. Interest expense is projected to be about $125 million.
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HOT closed Wednesday's regular session up 1.38% at $62.60. The stock has been trading between $47.41 and $62.67 for the past 52 weeks.