Starwood Hotels & Resorts Q3 Net Profit Slips, Tops View - Quick Facts

(RTTNews) - Starwood Hotels & Resorts Worldwide, Inc. (HOT) posted lower third-quarter 2013 net income attributable to the company of $157 million, or $0.81 per share, compared with last year's $170 million, or $0.87 per share. Further to the $33 million of special items, the 2012 results also included a gain of $23 million (net of tax) in discontinued operations, chiefly related to the favorable settlement of certain liabilities associated with a former division of ITT Corp., which the firm acquired in 1998, the company stated.

For the quarter, income from continuing operations was $157 million, versus $147 million in the 2012 third quarter. Excluding special items, income from continuing operations totaled $137 million in the period. Before items, earnings per share from continuing operations stood at $0.71 in the recent period. On average, 27 analysts polled by Thomson Reuters expected earnings per share of $0.63 for the quarter. Analysts' estimates typically exclude one-time items.

The firm clocked $1.51 billion in revenues, a 3.6% increase from the prior-year figure of $1.46 billion. Twenty analysts estimated revenues of $1.49 billion for the quarter.

Looking ahead to the fourth quarter, including Bal Harbour, earnings per share is expected to be around $0.68 - $0.70, while 27 analysts anticipate fourth-quarter earnings of $0.70 per share.

For 2013, the company sees earnings per share before items, including Bal Harbour, to be approximately $2.93 - $2.95. Analysts project earnings per share of $2.87 for the year.

In 2013, the Company expects Bal Harbour to contribute nearly $117 million in earnings. Bal Harbour is expected to sell out in 2013 and, hence, Starwood said it expects no earnings from Bal Harbour in 2014.

Additionally, the board declared the annual cash dividend of $1.35 per share, payable on December 27, 2013 to stockholders of record on December 13. Also, the board would pay dividends to stockholders on a quarterly basis commencing in 2014 and plans to make four quarterly dividend payments in 2014.