Yahoo Finance What's in Store for Choice Hotels (CHH) in Q4 Earnings?
Choice Hotels International, Inc. CHH is scheduled to report fourth-quarter 2022 results on Feb 15, before the opening bell. In the last reported quarter, the company delivered an earnings miss of 10.9%.
Q4 Estimates
The Zacks Consensus Estimate for the fourth-quarter bottom line is pegged at $1.08 per share, indicating an improvement of 9.1% from 99 cents reported in the year-ago quarter.
The Zacks Consensus Estimate for revenues is pegged at $351.9 million, suggesting growth of 23.6% from the prior-year quarter’s figure.
Factors to Note
Choice Hotels fourth-quarter performance is likely to have benefited from improving demand, expansion efforts and enhancement of the mid-scale brand. Robust Royalty, Licensing and Management Fees, Properties as well as Owned Hotels revenues are likely to aid the company’s results.
An increase in its business and group travel demand, driven by a rise in extended vacations, household relocations and temporary remote work assignments, also bodes well.
We expect Royalty, Licensing and Management Fees, Properties as well as Owned Hotels revenues to increase 39.6%, 4.6% and 66.9% to $136.3 million, $151.1 million and $21.9 million, respectively.
However, high costs are likely to have negatively impacted the company’s margin. We expect total operating expenses to increase 41.3% year over year.
Choice Hotels International, Inc. Price and EPS Surprise
Choice Hotels International, Inc. price-eps-surprise | Choice Hotels International, Inc. Quote
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Choice Hotels this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
Earnings ESP: Choice Hotels has an Earnings ESP of -4.25%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CHH has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks Poised to Beat on Earnings
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat.
Red Rock Resorts, Inc. RRR has an Earnings ESP of +6.43% and a Zacks Rank #3.
Shares of Red Rock Resorts have gained 3.6% in the past year. RRR’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 66.7%.
Roku, Inc. ROKU has an Earnings ESP of +1.97% and a Zacks Rank #3.
Shares of Roku have declined 61.8% in the past year. ROKU’s earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters and missed twice, the average surprise being 50.6%.
Planet Fitness, Inc. PLNT has an Earnings ESP of +2.53% and a Zacks Rank #3.
Shares of Planet Fitness have declined 5.2% in the past year. PLNT’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report
Planet Fitness, Inc. (PLNT) : Free Stock Analysis Report
Red Rock Resorts, Inc. (RRR) : Free Stock Analysis Report
Roku, Inc. (ROKU) : Free Stock Analysis Report
