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Hilton Stock: Strong Earnings Driven by Travel Recovery

Revenue per available room skyrocketed over 200% in latest quarter.

Hilton  (HLT) - Get Hilton Worldwide Holdings Inc (HLT) Report shares rose sharply Thursday, after the hotel giant reported stronger-than-expected adjusted profit for the second quarter driven by a recovery in travel.

Net income registered $130 million, or 46 cents a share, reversing a loss of $430 million, or $1.55 a share, last year, when the pandemic raged.

Adjusted earnings totaled 56 cents per share, besting the FactSet analyst consensus of 40 cents. Revenue per available room skyrocketed more than 200% to $73.03, exceeding analysts’ forecast of $67.80.

Hilton stock recently traded at $136.62, up 5%, and has surged 13% in the last month along with the jump in travel.

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To be sure, while revenue soared 135.6% to $1.33 billion from a pandemic-depressed $564 million, the latest figure trailed the FactSet analyst consensus of $1.42 billion.

"The broader distribution of vaccinations and the easing of travel and other restrictions have allowed for renewed interest in travel and tourism, with families embarking on long-delayed trips, and businesses scheduling in-person meetings again," said Hilton Chief Executive Christopher Nassetta in a statement.

"While the pace of recovery varies by region, particularly with the uncertainty surrounding coronavirus variants, we expect continued strength in leisure demand and further upticks in business travel to drive continued resurgence in the back half of the year."

In other travel news, founder Jim Cramer had words of praise for Boeing  (BA) - Get Boeing Company Report Wednesday, after it posted its first quarterly profit in more than two years.

"What I see from Boeing is a much stronger Boeing than we thought," Cramer told Action Alerts PLUS senior analyst Jeff Marks.