Workforce housing company Target Hospitality (NASDAQ:TH) will be reporting earnings tomorrow before market hours. Here's what you need to know.
Target Hospitality beat analysts' revenue expectations by 4.6% last quarter, reporting revenues of $106.7 million, down 27.8% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates and full-year revenue guidance beating analysts' expectations.
Is Target Hospitality a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Target Hospitality's revenue to decline 31.4% year on year to $98.6 million, a reversal from the 31% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.17 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Target Hospitality has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 5.2% on average.
Looking at Target Hospitality's peers in the hotels, resorts and cruise lines segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Playa Hotels & Resorts's revenues decreased 5.1% year on year, beating analysts' expectations by 3.1%, and Carnival reported revenues up 17.7%, topping estimates by 1.9%. Carnival traded up 12% following the results.
Read our full analysis of Playa Hotels & Resorts's results here and Carnival's results here.
Investors in the hotels, resorts and cruise lines segment have had steady hands going into earnings, with share prices flat over the last month. Target Hospitality's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $9.3 (compared to the current share price of $8.79).
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