Choice Hotels Q4 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy CHH?
Source: seekingalpha
- Earnings Beat: Choice Hotels reported a Q4 non-GAAP EPS of $1.60, exceeding expectations by $0.06, indicating a robust performance in profitability amidst a competitive hotel market.
- Revenue Growth: The company achieved Q4 revenue of $390.15 million, a slight increase of 0.1% year-over-year, surpassing market expectations by $20.51 million, reflecting its adaptability and stable customer demand in a recovering economy.
- Annual Adjusted EPS Guidance: For FY26, the adjusted EPS is projected at $7.13, showcasing the company's confidence in future profitability and ongoing improvements in management and operational efficiency.
- Financial Stability: Choice Hotels' adjusted net income is estimated between $320,000 and $330,000, demonstrating effective strategies in cost control and revenue optimization, thereby enhancing its competitive position in the industry.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CHH?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CHH
Wall Street analysts forecast CHH stock price to fall
10 Analyst Rating
2 Buy
5 Hold
3 Sell
Hold
Current: 110.010
Low
91.00
Averages
103.44
High
126.00
Current: 110.010
Low
91.00
Averages
103.44
High
126.00
About CHH
Choice Hotels International, Inc. is a lodging franchisor with over 7,500 hotels, representing over 650,000 rooms, in 46 countries and territories. The Company’s segments include Hotel Franchising & Management and Corporate & Other. The Hotel Franchising & Management reportable segment includes the Company's hotel franchising operations, which consist of its approximately 22 brands and brand extensions and the hotel management operations of 13 hotels (inclusive of four-owned hotels). Its brand names include Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Ascend Hotel Collection, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Studios, WoodSpring Suites, Everhome Suites, and Cambria Hotels (collectively, the legacy Choice brands). It also includes Radisson Blu, Radisson RED, Radisson, Park Plaza, Country Inn & Suites by Radisson, Radisson Inn & Suites, Park Inn by Radisson, Radisson Individuals, and Radisson Collection.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Choice Hotels to Announce Q4 Earnings on February 19
- Earnings Announcement: Choice Hotels is set to release its Q4 2023 earnings report on February 19 before the market opens, with consensus EPS estimates at $1.54, reflecting a 0.6% year-over-year decline, and revenue estimates at $369.64 million, down 5.2% year-over-year, indicating potential revenue challenges ahead.
- Historical Performance Review: Over the past two years, Choice Hotels has beaten EPS estimates 63% of the time and revenue estimates 25% of the time, demonstrating relative stability in profitability, although the lower frequency of revenue beats may affect investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen six upward revisions and three downward revisions, while revenue estimates have experienced two upward and three downward revisions, reflecting market uncertainty regarding the company's future performance, prompting investors to closely monitor the earnings results.
- Luxury Hotel Market Impact: As ultra-luxury hotels push prices to record highs due to continued spending by wealthy travelers, this trend may influence Choice Hotels' market positioning and pricing strategy, compelling the company to reassess its business strategy in a competitive landscape.
See More
Choice Hotels Q4 Earnings Exceed Expectations
- Earnings Beat: Choice Hotels reported a Q4 non-GAAP EPS of $1.60, exceeding expectations by $0.06, indicating a robust performance in profitability amidst a competitive hotel market.
- Revenue Growth: The company achieved Q4 revenue of $390.15 million, a slight increase of 0.1% year-over-year, surpassing market expectations by $20.51 million, reflecting its adaptability and stable customer demand in a recovering economy.
- Annual Adjusted EPS Guidance: For FY26, the adjusted EPS is projected at $7.13, showcasing the company's confidence in future profitability and ongoing improvements in management and operational efficiency.
- Financial Stability: Choice Hotels' adjusted net income is estimated between $320,000 and $330,000, demonstrating effective strategies in cost control and revenue optimization, thereby enhancing its competitive position in the industry.
See More
Choice Hotels Issues 2026 Earnings Guidance
- Earnings Report: Choice Hotels International, Inc. reported its fourth-quarter financial results on Thursday, marking the first time the company has issued earnings guidance for fiscal 2026, indicating confidence in future performance.
- Earnings Projections: The company projects earnings per share for fiscal 2026 to be in the range of $5.72 to $5.94, with adjusted earnings between $6.92 and $7.14, reflecting robust profitability and market demand.
- Stock Performance: In pre-market trading on Thursday, Choice Hotels' stock rose by $2.18, or 1.99%, demonstrating a positive investor reaction to the company's future outlook.
- Market Implications: The release of this earnings guidance not only provides investors with clear financial expectations but may also attract more investor interest in Choice Hotels, potentially enhancing its market performance.
See More
Hyatt Chairman Pritzker Resigns Amid Epstein Controversy
- Chairman's Resignation: Thomas Pritzker, the chairman of Hyatt Hotels, announced his immediate resignation after over two decades in the role, highlighting the pressures and challenges facing corporate governance amid scandals.
- Scandal Association: Pritzker expressed regret over his ties to sex offender Jeffrey Epstein, admitting to poor judgment in maintaining contact, which could negatively impact Hyatt's brand image and stakeholder trust.
- Succession Plan: The Hyatt board appointed CEO Mark Hoplamazian as the new chairman, ensuring continuity in governance and aiming to stabilize investor confidence during this transitional period.
- Executive Resignation Wave: Pritzker's departure marks the latest in a series of high-profile resignations, reflecting the corporate world's heightened sensitivity to associations with Epstein, potentially affecting future leadership structures and strategic directions.
See More
Market Dynamics of Heavily Shorted Stocks
- Attraction of Shorted Stocks: LCID stock has become a target for heavy shorting as many experienced traders and institutional investors believe the company's fundamentals are overvalued, reflecting a pessimistic outlook on its future performance.
- Short Selling Mechanics: Short sellers bet on significant risks facing the company, such as poor earnings or industry headwinds, which may lead to a decline in stock price, thus garnering attention for short-selling strategies in the market.
- Short Squeeze Dynamics: When a stock's price unexpectedly rises, short sellers are forced to buy back shares to cover their positions, creating a surge in demand that further drives up the price, resulting in a feedback loop that can lead to explosive gains in a short time frame.
- Most Shorted Stocks List: As of February 13, the most heavily shorted stocks include companies with market caps above $2 billion and free floats exceeding 5 million shares, with short interest serving as a barometer of market sentiment.
See More
Choice Hotels Unveils Next-Gen Everhome Suites Prototype
- Brand Innovation: Choice Hotels has launched a newly redesigned prototype for its Everhome Suites brand, reinforcing the company's commitment to innovation in the high-growth midscale extended stay market, aimed at enhancing brand appeal and attracting more investors.
- Design and Efficiency: The new prototype blends design innovation with investment intelligence, intended to improve operational efficiency and create long-term value for hotel owners, thereby enhancing their competitive position in the market.
- Market Positioning: As a leader in the extended stay segment, the new design of Everhome Suites will further solidify its leadership in the midscale market, catering to the growing consumer demand for extended stay options.
- Strategic Implications: The prototype launch not only showcases Choice Hotels' keen insight into future market trends but also demonstrates its commitment to driving innovation and value creation within the industry.
See More
Choice Hotels to Announce Q4 Earnings on February 19
- Earnings Announcement: Choice Hotels is set to release its Q4 2023 earnings report on February 19 before the market opens, with consensus EPS estimates at $1.54, reflecting a 0.6% year-over-year decline, and revenue estimates at $369.64 million, down 5.2% year-over-year, indicating potential revenue challenges ahead.
- Historical Performance Review: Over the past two years, Choice Hotels has beaten EPS estimates 63% of the time and revenue estimates 25% of the time, demonstrating relative stability in profitability, although the lower frequency of revenue beats may affect investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen six upward revisions and three downward revisions, while revenue estimates have experienced two upward and three downward revisions, reflecting market uncertainty regarding the company's future performance, prompting investors to closely monitor the earnings results.
- Luxury Hotel Market Impact: As ultra-luxury hotels push prices to record highs due to continued spending by wealthy travelers, this trend may influence Choice Hotels' market positioning and pricing strategy, compelling the company to reassess its business strategy in a competitive landscape.
See More
Choice Hotels Q4 Earnings Exceed Expectations
- Earnings Beat: Choice Hotels reported a Q4 non-GAAP EPS of $1.60, exceeding expectations by $0.06, indicating a robust performance in profitability amidst a competitive hotel market.
- Revenue Growth: The company achieved Q4 revenue of $390.15 million, a slight increase of 0.1% year-over-year, surpassing market expectations by $20.51 million, reflecting its adaptability and stable customer demand in a recovering economy.
- Annual Adjusted EPS Guidance: For FY26, the adjusted EPS is projected at $7.13, showcasing the company's confidence in future profitability and ongoing improvements in management and operational efficiency.
- Financial Stability: Choice Hotels' adjusted net income is estimated between $320,000 and $330,000, demonstrating effective strategies in cost control and revenue optimization, thereby enhancing its competitive position in the industry.
See More
Choice Hotels Issues 2026 Earnings Guidance
- Earnings Report: Choice Hotels International, Inc. reported its fourth-quarter financial results on Thursday, marking the first time the company has issued earnings guidance for fiscal 2026, indicating confidence in future performance.
- Earnings Projections: The company projects earnings per share for fiscal 2026 to be in the range of $5.72 to $5.94, with adjusted earnings between $6.92 and $7.14, reflecting robust profitability and market demand.
- Stock Performance: In pre-market trading on Thursday, Choice Hotels' stock rose by $2.18, or 1.99%, demonstrating a positive investor reaction to the company's future outlook.
- Market Implications: The release of this earnings guidance not only provides investors with clear financial expectations but may also attract more investor interest in Choice Hotels, potentially enhancing its market performance.
See More
Hyatt Chairman Pritzker Resigns Amid Epstein Controversy
- Chairman's Resignation: Thomas Pritzker, the chairman of Hyatt Hotels, announced his immediate resignation after over two decades in the role, highlighting the pressures and challenges facing corporate governance amid scandals.
- Scandal Association: Pritzker expressed regret over his ties to sex offender Jeffrey Epstein, admitting to poor judgment in maintaining contact, which could negatively impact Hyatt's brand image and stakeholder trust.
- Succession Plan: The Hyatt board appointed CEO Mark Hoplamazian as the new chairman, ensuring continuity in governance and aiming to stabilize investor confidence during this transitional period.
- Executive Resignation Wave: Pritzker's departure marks the latest in a series of high-profile resignations, reflecting the corporate world's heightened sensitivity to associations with Epstein, potentially affecting future leadership structures and strategic directions.
See More
Market Dynamics of Heavily Shorted Stocks
- Attraction of Shorted Stocks: LCID stock has become a target for heavy shorting as many experienced traders and institutional investors believe the company's fundamentals are overvalued, reflecting a pessimistic outlook on its future performance.
- Short Selling Mechanics: Short sellers bet on significant risks facing the company, such as poor earnings or industry headwinds, which may lead to a decline in stock price, thus garnering attention for short-selling strategies in the market.
- Short Squeeze Dynamics: When a stock's price unexpectedly rises, short sellers are forced to buy back shares to cover their positions, creating a surge in demand that further drives up the price, resulting in a feedback loop that can lead to explosive gains in a short time frame.
- Most Shorted Stocks List: As of February 13, the most heavily shorted stocks include companies with market caps above $2 billion and free floats exceeding 5 million shares, with short interest serving as a barometer of market sentiment.
See More
Choice Hotels Unveils Next-Gen Everhome Suites Prototype
- Brand Innovation: Choice Hotels has launched a newly redesigned prototype for its Everhome Suites brand, reinforcing the company's commitment to innovation in the high-growth midscale extended stay market, aimed at enhancing brand appeal and attracting more investors.
- Design and Efficiency: The new prototype blends design innovation with investment intelligence, intended to improve operational efficiency and create long-term value for hotel owners, thereby enhancing their competitive position in the market.
- Market Positioning: As a leader in the extended stay segment, the new design of Everhome Suites will further solidify its leadership in the midscale market, catering to the growing consumer demand for extended stay options.
- Strategic Implications: The prototype launch not only showcases Choice Hotels' keen insight into future market trends but also demonstrates its commitment to driving innovation and value creation within the industry.
See More
