Hotel franchisor Choice Hotels (NYSE: CHH) will be reporting results this Wednesday before the bell. Here’s what investors should know.
Choice Hotels missed analysts’ revenue expectations by 4% last quarter, reporting revenues of $332.9 million, flat year on year. It was a slower quarter for the company, with a miss of analysts’ adjusted operating income estimates and a miss 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 decline 1.6% year on year to $428.3 million, a reversal from the 1.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.90 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 Q2 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 9.5%, beating analysts’ expectations by 1.7%, and Lindblad Expeditions reported revenues up 23%, topping estimates by 5.6%. Carnival traded up 5.9% following the results.
Read our full analysis of Carnival’s results here and Lindblad Expeditions’s results here.
There has been positive sentiment among investors in the travel and vacation providers segment, with share prices up 2.5% on average over the last month. Choice Hotels is down 3.4% during the same time and is heading into earnings with an average analyst price target of $134.57 (compared to the current share price of $126.99).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
