The upcoming report from Choice Hotels (CHH) is expected to reveal quarterly earnings of $1.38 per share, indicating an increase of 7.8% compared to the year-ago period. Analysts forecast revenues of $347.14 million, representing an increase of 4.6% year over year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Bearing this in mind, let's now explore the average estimates of specific Choice Hotels metrics that are commonly monitored and projected by Wall Street analysts.
The consensus estimate for 'Revenues- Other revenues from franchised and managed properties' stands at $172.35 million. The estimate suggests a change of +4.7% year over year.
Analysts expect 'Revenues- Royalty, licensing and management fees' to come in at $108.35 million. The estimate suggests a change of +2.7% year over year.
The consensus among analysts is that 'Revenues- Owned Hotels' will reach $26.46 million. The estimate points to a change of +5.9% from the year-ago quarter.
It is projected by analysts that the 'Revenues- Initial franchise fees' will reach $6.83 million. The estimate indicates a year-over-year change of +1.8%.
According to the collective judgment of analysts, 'Revenues- Platform and procurement services fees' should come in at $17.19 million. The estimate suggests a change of +25% year over year.
The average prediction of analysts places 'Revenues- Other revenues' at $14.88 million. The estimate suggests a change of -9% year over year.
Analysts predict that the 'Average Daily Rate (ADR)' will reach $89.17. Compared to the present estimate, the company reported $89.23 in the same quarter last year.
Based on the collective assessment of analysts, 'Total Franchise Rooms' should arrive at 645,219. Compared to the current estimate, the company reported 630,128 in the same quarter of the previous year.
Analysts forecast 'Occupancy' to reach 51.2%. Compared to the present estimate, the company reported 50.7% in the same quarter last year.
The collective assessment of analysts points to an estimated 'Rooms - Domestic Franchises' of 512,189. The estimate is in contrast to the year-ago figure of 494,096.
The combined assessment of analysts suggests that 'RevPAR' will likely reach $45.68. Compared to the present estimate, the company reported $45.24 in the same quarter last year.
View all Key Company Metrics for Choice Hotels here>>>
Shares of Choice Hotels have experienced a change of +6.8% in the past month compared to the +10.6% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), CHH is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Choice Hotels International, Inc. (CHH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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