Hotel franchisor Choice Hotels (NYSE: CHH) will be reporting earnings tomorrow morning. Here’s what to expect.
Choice Hotels beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $389.8 million, up 8.8% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates and full-year EBITDA guidance topping analysts’ expectations.
Is Choice Hotels a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Choice Hotels’s revenue to grow 4.4% year on year to $346.7 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.37 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Choice Hotels has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Choice Hotels’s peers in the travel and vacation providers segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Hyatt Hotels posted flat year-on-year revenue, beating analysts’ expectations by 2%, and Playa Hotels & Resorts reported a revenue decline of 11.1%, in line with consensus estimates. Hyatt Hotels traded up 9.2% following the results while Playa Hotels & Resorts’s stock price was unchanged.
Read our full analysis of Hyatt Hotels’s results here and Playa Hotels & Resorts’s results here.
There has been positive sentiment among investors in the travel and vacation providers segment, with share prices up 12.7% on average over the last month. Choice Hotels is up 6.8% during the same time and is heading into earnings with an average analyst price target of $134.32 (compared to the current share price of $125.51).
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