Compared to Estimates, Choice Hotels (CHH) Q1 Earnings: A Look at Key Metrics

Choice Hotels (CHH) reported $331.95 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 0.3%. EPS of $1.28 for the same period compares to $1.12 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $345.02 million, representing a surprise of -3.79%. The company delivered an EPS surprise of +11.30%, with the consensus EPS estimate being $1.15.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Choice Hotels performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• RevPAR Growth: -5.9% versus -2.7% estimated by three analysts on average.

• RevPAR: $45.24 versus $47.52 estimated by three analysts on average.

• Rooms - Domestic Franchises: 494,096 versus 497,615 estimated by three analysts on average.

• Occupancy: 50.7% versus 52.8% estimated by two analysts on average.

• Total Franchise Rooms: 630,128 versus 639,084 estimated by two analysts on average.

• Average Daily Rate (ADR): $89.23 compared to the $91.25 average estimate based on two analysts.

• Revenues- Other revenues from franchised and managed properties: $164.67 million versus the five-analyst average estimate of $174.27 million.

• Revenues- Royalty, licensing and management fees: $105.47 million versus $114.95 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -1.9% change.

• Revenues- Owned Hotels: $24.99 million compared to the $21.58 million average estimate based on five analysts. The reported number represents a change of +11.9% year over year.

• Revenues- Initial franchise fees: $6.71 million compared to the $8.32 million average estimate based on five analysts. The reported number represents a change of -14.9% year over year.

• Revenues- Platform and procurement services fees: $13.76 million versus $14.23 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -0.6% change.

• Revenues- Other revenues: $16.36 million versus the four-analyst average estimate of $10.79 million. The reported number represents a year-over-year change of +53.9%.

View all Key Company Metrics for Choice Hotels here>>>

Shares of Choice Hotels have returned -3.2% over the past month versus the Zacks S&P 500 composite's -0.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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