Hotel franchisor Choice Hotels (NYSE:CHH) will be reporting earnings tomorrow before market hours. Here’s what to expect.
Choice Hotels missed analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $428 million, flat year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EPS estimates.
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 5.8% year on year to $379.3 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.48 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 six times over the last two years.
Looking at Choice Hotels’s peers in the travel and vacation providers segment, some have already reported their Q4 results, giving us a hint as to what we can expect. United Airlines delivered year-on-year revenue growth of 7.8%, beating analysts’ expectations by 2.1%, and Royal Caribbean reported revenues up 12.9%, in line with consensus estimates. United Airlines traded down 2.3% following the results while Royal Caribbean was up 13.6%.
Read our full analysis of United Airlines’s results here and Royal Caribbean’s results here.
Investors in the travel and vacation providers segment have had steady hands going into earnings, with share prices up 1.6% on average over the last month. Choice Hotels is up 2.8% during the same time and is heading into earnings with an average analyst price target of $133.95 (compared to the current share price of $149.19).
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