Hotel franchisor Choice Hotels (NYSE:CHH) will be reporting results tomorrow before the bell. Here’s what to look for.
Choice Hotels met analysts’ revenue expectations last quarter, reporting revenues of $435.2 million, up 1.8% year on year. It was a slower quarter for the company, with a miss of analysts’ EBITDA 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 1.5% year on year to $431.9 million, slowing from the 2.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.91 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. Choice Hotels has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Choice Hotels’s peers in the travel and vacation providers segment, some have already reported their Q3 results, giving us a hint as to what we can expect. American Airlines delivered year-on-year revenue growth of 1.2%, meeting analysts’ expectations, and Norwegian Cruise Line reported revenues up 10.7%, topping estimates by 1.4%. American Airlines traded up 2.5% following the results while Norwegian Cruise Line was also up 4.3%.
Read our full analysis of American Airlines’s results here and Norwegian Cruise Line’s results here.
Investors in the travel and vacation providers segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. Choice Hotels is up 7.8% during the same time and is heading into earnings with an average analyst price target of $124.21 (compared to the current share price of $138.76).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.