Hotel franchisor Choice Hotels (NYSE: CHH) will be reporting results this Thursday before the bell. Here’s what investors should know.
Choice Hotels beat analysts’ revenue expectations last quarter, reporting revenues of $390.2 million, flat year on year. It was a strong quarter for the company, with an impressive beat of analysts’ revenue and adjusted operating income 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, in line with its flat revenue from the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing in majority upward revisions over the last 30 days. 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 Q1 results, giving us a hint as to what we can expect. Hilton delivered year-on-year revenue growth of 9%, missing analysts’ expectations by 1.4%, and American Airlines reported revenues up 10.8%, topping estimates by 0.6%. American Airlines traded up 5.2% following the results.
Read our full analysis of Hilton’s results here and American Airlines’s results here.
There has been positive sentiment among investors in the consumer discretionary - travel and vacation providers segment, with share prices up 12.5% on average over the last month. Choice Hotels is up 18.5% during the same time and is heading into earnings with an average analyst price target of $116.13 (compared to the current share price of $119.92).
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