Hilton Grand Vacations Inc. (HGV – Free Report) is riding the wave in travel. This Zacks Rank #1 (Strong Buy) is expected to see double digit earnings growth in 2018.

Hilton Grand Vacations is a global timeshare company in vacation destinations around the world. It manages two club membership programs: Hilton Grand Vacations Club and The Hilton Club for 285,000 Club Members.

Another Beat in the Fourth Quarter

On Mar 1, Hilton Grand Vacations reported its fourth quarter 2017 results and beat the Zacks Consensus for the fourth straight quarter.

It reported earnings of $0.52 which was a penny better than the Zacks Consensus Estimate of $0.51.

The company only went IPO in January 2017 so it recently celebrated its first year as a publicly traded company even though it has been operating in the timeshare business for 25 years.

Contract sales are a key metric in the industry. Hilton Grand Vacations saw an increase of 8.3% in the fourth quarter to $339 million from the year ago quarter. Tours also increased 10.7% to 83,910 in the quarter.

For the year, contract sales jumped 8.8% to $1.3 billion.

The Resort Operations and Club Management division also saw solid results in the fourth quarter, as revenue rose 10.2% year-over-year to $97 million. For the year, it saw revenue gain of 8.3% to $367 million.

Guided Above Consensus

The company is bullish on 2018.

In the fourth quarter, it announced its first ever timeshare resort in Japan. The 132-unit purpose-built development will be on Sesokojima Island, Okinawa.

It expects contract sales for the year between 6% and 8%.

Earnings are expected to range between $2.90 and $3.06.

The analysts were much lower so already 2 estimates have been raised in the last week for 2018. The Zacks Consensus Estimate has jumped to $2.56 from $2.14.

That’s earnings growth of 30% in 2018 as the company made $1.97 in 2017.

Analysts are also bullish on 2019 with 1 estimate moving higher. The Zacks Consensus has jumped to $3.07 from $2.40.