Intercontinental Hotels Group (LON:IHG) has reported preliminary annual results for the year ended 31 December 2021. Total revenue rose to $2.907 billion, indicating a 21% increase from the $2.3 billion levels reported in the previous year. The growth in revenues enables IHG to resume dividend payout with the announcement of dividend per share of 85.9¢.
IHG beat analyst expectations in its reporting showing the company has successfully weathered the impacts of the pandemic on the hotel and hospitality industry. IHG revenues for 2021 at 70% of the level of 2019 revenues indicate that the company is still trading under the pre-pandemic capacity. Nonetheless, the growth is received well by the market by a market reeling under the pressure of high inflation rates.
IHG price under slight downward pressure
Source – TradingView
Technical analysis of the share price indicates the impact of the cyclical economy on the stock. The share at $68 indicates an upward trend. Both MA 10 and MA 20 trend above MA 50. The company is likely to establish resistance at $70 and support at $63.
Linear trend analysis shows that though stable, the share price continues to face slight downward pressure. The analysis offers a hold recommendation for IHG as it shows price level stability even as it resumes dividend payments.
IHG results indicate a 21% growth in total revenues for the year ended 31 December 2021, indicating the company’s recovery from the pandemic impacts. The recovery paves way for the resumption of IHG’s dividend payout policy with an 85.9¢ dividend per share. Share price to stabilize between $63 and $70.
The post Intercontinental Hotels reports 21% growth in revenues. Should you hold? appeared first on Invezz.