Starwood Hotels and Resorts Worldwide, Inc.'s (HOT) second quarter earnings of $0.22 per share, were seven cents ahead of the Zacks Consensus Estimate, driven by the cost reduction initiatives implemented by the company. However, revenues were down in the quarter and the company’s guidance is below our consensus estimate. EPS from continuing operations was $0.22, excluding special items, compared to $0.56 in the year-ago period. Income from continuing operations, excluding special items, was $41 million, versus $107 million in the prior-year period. Adjusted EBITDA was $200 million, versus $299 million the year-ago period. The lower results stemmed from significant deterioration in revenue per available room (RevPAR). Worldwide system-wide same-store RevPAR was down 27.7% in the quarter compared to the year-ago period. System-wide same-store RevPAR in North America was down 25.4% year-over-year. Management and franchise revenues were down 18.0% year-over-year. Margins were also restricted as a ...

Florida summers are hot and humid, so we take a lot of family trips to our community's pool. It's a nice way to cool off, relax, and chat with our neighbors. I've met all kinds of interesting people over there, and had plenty of great conversations. But one particular exchange is permanently seared into my brain. And I think it holds a great lesson for investors. So today, I want to tell you the story. It all started when my neighbor said ... "The Only Reason Companies Pay Dividends Is Because They Are No Longer Growing!" Given my line of work, I expect financial debates. In fact, I welcome them. But I would have never expected to find one in a hot tub. It was a Friday night, and Disha and I decided ...