Hotel franchisor Choice Hotels (NYSE: CHH) will be announcing earnings results this Wednesday before market open. Here’s what investors should know.
Choice Hotels beat analysts’ revenue expectations last quarter, reporting revenues of $340.6 million, up 2.3% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS and EBITDA estimates.
Is Choice Hotels a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Choice Hotels’s revenue to be flat year on year, improving from the 2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Choice Hotels has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Choice Hotels’s peers in the consumer discretionary - travel and vacation providers segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Delta delivered year-on-year revenue growth of 18.7%, beating analysts’ expectations by 3.9%, and Frontier reported revenues up 37.7%, topping estimates by 4.6%. Delta traded down 3.2% following the results while Frontier was up 12%.
Read our full analysis of Delta’s results here and Frontier’s results here.
Investors in the consumer discretionary - travel and vacation providers segment have had steady hands going into earnings, with share prices flat over the last month. Choice Hotels’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $113.33 (compared to the current share price of $108.54).
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