Earnings Beat, Revenue Misses
Adjusted earnings were $3.19 per share, up from $2.65 a year earlier and above the analyst estimate of $3.09. Revenue increased 5% year over year to $7.07 billion but missed the consensus estimate of $7.20 billion. Reported diluted earnings per share rose to $2.90 from $2.78.
Net income totaled $766 million, while adjusted net income increased 16% to $844 million. Adjusted EBITDA rose 13% to $1.59 billion.
Adjusted operating income climbed 12% to $1.33 billion, with the adjusted operating margin expanding to 66% from 65% a year ago. Reported operating income edged down to $1.23 billion.
Gross fee revenue increased 13% to $1.58 billion. Franchise and base management fees rose 14% to $1.37 billion, while incentive management fees increased 6% to $212 million.
