Overview

* Hilton Grand Vacations ( HGV ) Q2 contract sales rise 10.2% yr/yr

* Adjusted EPS for Q2 misses analyst expectations, per LSEG data

* Co repurchased 4.1 mln shares for $150 mln, announces $600 mln buyback plan

Outlook

* Company reiterates full-year 2025 Adjusted EBITDA guidance of $1.125 bln to $1.165 bln

Result Drivers

* CONTRACT SALES GROWTH - Contract sales increased 10.2% yr/yr to $834 mln, driven by improved execution, per CEO Mark Wang

* FINANCING REVENUE - Real Estate Sales and Financing segment revenues rose due to a $24 mln increase in financing revenue, despite a $6 mln decrease in sales revenue

* DEFERRED REVENUES - Total revenues of $1.266 bln were impacted by a net deferral, primarily related to projects under construction in Hawaii and Japan

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $0.54 $0.76 (6

Adjusted Analysts

EPS )

Q2 EPS $0.25

Q2 Net $25 mln

Income

Q2 $233 mln

Adjusted

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy."

* Wall Street's median 12-month price target for Hilton Grand Vacations Inc ( HGV ) is $48.00, about 5.8% below its July 30 closing price of $50.78

* The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)