STAMFORD, Connecticut — Starwood Hotels & Resorts Worldwide Inc. reported mixed fourth-quarter results on Tuesday and said that it plans to spin off its timeshare business into a separate, publicly traded company.
The stock rose more than 5 percent in morning trading.
Starwood plans to spin off Starwood Vacation Ownership, which has 22 timeshare resorts. The new company, which has yet to be named officially, will maintain its headquarters in Orlando, Florida. The spinoff is expected to be completed by year's end.
For the fourth quarter, Starwood reported a profit of $234 million, or $1.33 per share. Earnings from continuing operations were $1.40 per share.
Earnings from continuing operations, adjusted for one-time gains and costs, were 97 cents per share.
The results surpassed Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 77 cents per share.
The owner of Sheraton and St. Regis hotels posted revenue of $1.49 billion in the period, which missed Wall Street forecasts. Analysts expected $1.52 billion, according to Zacks.
For the year, the Starwood reported a profit of $633 million, or $3.40 per share. Earnings from continuing operations were $3.46 per share. Adjusted earnings from continuing operations were $3.02 per share. Revenue totaled $5.98 billion.
The Stamford, Connecticut-based company anticipates first-quarter earnings between 53 cents and 57 cents per share. It foresees 2015 earnings in a range of $2.87 to $2.97 per share.
Analysts surveyed by FactSet had been projecting first-quarter earnings of 63 cents per share and full-year earnings of $3.11 per share.
Shares of Starwood gained $3.89, or 5.4 percent, to $75.12 in morning trading. Its shares have dipped less than a percentage point over the past year.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on HOT at http://www.zacks.com/ap/HOT
Keywords: Starwood Hotels, Earnings Report
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