DRH Earnings Prediction
The chart below shows how DRH performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DRH sees a +1.07% change in stock price 10 days leading up to the earnings, and a +0.25% change 10 days following the report. On the earnings day itself, the stock moves by -0.58%. This data can give you a slight idea of what to expect for the next quarter's release.
DRH Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
285.13M
3.11%
-7.81%
Gross Margin
18.31%
1.78%
-18.55%
Operating Margin
15.63%
2.36%
17.87%
Net Margin
9.31%
-5.77%
16.96%
EPS
0.11
-8.33%
10.00%
No Data Available
DRH Earnings Analysis
DiamondRock Hospitality Company Corporation (DRH.N) Earnings Conference Call
Positive
RevPAR Performance Improvement: 1. RevPAR Growth: Comparable RevPAR increased by 2.8% over 2023, outperforming the previous quarter by 60 basis points, indicating strong demand in the hospitality sector.
Group Revenue Increase: 2. Group Revenue Surge: Group revenues rose by 15.7% compared to 2023, driven by an 8.8% increase in rates and a 6.3% increase in room nights sold, showcasing robust group demand.
EBITDA Growth and Efficiency: 3. Strong EBITDA Performance: Comparable hotel adjusted EBITDA reached $82.3 million, reflecting a 2.2% growth over 2023, demonstrating effective cost management and operational efficiency.
Share Repurchase Activity: 4. Share Repurchase Program: The company repurchased 700,000 shares at an average price of $8.14 per share during the quarter, totaling 3.1 million shares repurchased to date, which reflects confidence in the company's value.
Capital Expenditure Reduction: 5. Capital Expenditure Efficiency: The company reduced its full-year capital expenditure guidance to $85 million, down from $90-$100 million, indicating improved capital allocation and cost management strategies.
Negative
Resort RevPAR Decline: 1. Decline in Resort RevPAR: Comparable RevPAR at resorts decreased by 80 basis points from 2023, significantly impacted by a 35 basis point headwind from Hurricane Helene, which translated to an 86 basis point reduction in total RevPAR growth.
Declining Urban Hotel Demand: 2. Weakening Transient Demand: Weekend transient occupancy in urban hotels fell by 3% in the third quarter, indicating a concerning trend in demand that could affect future revenue.
Capital Expenditure Reduction: 3. Reduced Capital Expenditure Guidance: The company lowered its full-year capital expenditure guidance to $85 million from a previous range of $90 million to $100 million, reflecting a reassessment of project scopes and cost savings.
RevPAR Growth Guidance Adjustment: 4. Tightened RevPAR Growth Guidance: The company narrowed its guidance for comparable RevPAR growth to a range of 1.5% to 2%, down from a previous range of 1.5% to 3%, indicating a more cautious outlook for revenue growth.
Group Booking Decline: 5. Group Booking Pace Decline: Group booking pace for 2025 is down over 3% compared to the same time last year, suggesting potential challenges in maintaining group revenue levels moving forward.
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DRH Earning Call Sentiment
DiamondRock Hospitality Company (DRH) Q3 2024 Earnings Conference Call Transcript
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00:00
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DRH.N
-1.37%Positive
The earnings call presents mixed signals. Financial performance shows moderate growth in RevPAR and EBITDA, but with some declining trends in resort RevPAR. The share repurchase program is a positive factor, yet the Q&A reveals concerns about labor costs, market weaknesses, and unclear management responses. The company's strategic focus remains stable, but economic pressures and aggressive pricing pose challenges. Despite positive shareholder returns, the overall sentiment is neutral due to these mixed indicators and the moderate market cap, suggesting a limited stock price reaction.