SHO Earnings Prediction
The chart below shows how SHO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SHO sees a +1.03% change in stock price 10 days leading up to the earnings, and a +1.62% change 10 days following the report. On the earnings day itself, the stock moves by +0.73%. This data can give you a slight idea of what to expect for the next quarter's release.
SHO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
226.39M
-8.60%
-8.52%
Gross Margin
46.45%
-3.77%
-7.95%
Operating Margin
7.24%
-33.15%
-49.58%
Net Margin
1.44%
-77.07%
-86.36%
EPS
-0.00
-100.00%
-100.00%
No Data Available
SHO Earnings Analysis
Sunstone Hotel Investors, Inc. Corporation (SHO.N) Earnings Conference Call
Positive
RevPAR Performance Surge: 1. Strong RevPAR Growth: The newly converted Westin Washington, DC Downtown achieved a RevPAR growth of 33% and total RevPAR growth of 39%, significantly outperforming expectations and attracting higher quality groups.
Group Production Growth: 2. Robust Group Production: Group production for the third quarter saw room nights booked increase by 11% year-over-year, resulting in a healthy 15% growth in revenue.
Business Travel Strength: 3. Improved Business Travel Trends: Business travel showed strength with the Marriott Boston Long Wharf reporting total RevPAR growth of 8.6%, driven by a 500 basis point increase in occupancy due to strong corporate demand.
Shareholder Capital Return: 4. Significant Share Repurchases: The company repurchased $23 million of stock during the quarter, bringing the year-to-date total to over $26 million, reflecting a commitment to returning capital to shareholders.
Liquidity Strength and Flexibility: 5. Strong Liquidity Position: The company maintains a robust balance sheet with nearly $700 million in total liquidity, providing significant flexibility for future investments and capital allocation.
Negative
RevPAR Decline Forecast: 1. Declining RevPAR Guidance: The company expects full-year RevPAR to decline between 1.75% to 3.25% compared to 2023, indicating a significant downturn in revenue per available room.
Rising Renovation Expenses: 2. Increased Renovation Costs: The total renovation investment for the Andaz Miami Beach has risen to approximately $95 million, an increase of $15 million due to cost inflation and extended timelines, impacting future profitability.
Labor Disruption Effects: 3. Labor Disruption Impact: Labor activity at the Hilton San Diego Bayfront has negatively affected revenue growth and earnings, with lingering impacts expected to continue into the fourth quarter.
Disappointing Leisure Demand: 4. Soft Leisure Demand: The leisure demand environment, particularly in Maui, has been disappointing, with occupancy and rates coming in below expectations, leading to a more muted outlook for the festive period.
Stagnant Revenue Performance: 5. Flat Comparable RevPAR Growth: Comparable RevPAR growth, excluding the Confidante Miami Beach, was effectively flat, indicating stagnation in revenue performance across the portfolio.
SHO FAQs
How does SHO typically perform around its earnings report dates?
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SHO Earning Call Sentiment
Sunstone Hotel Investors, Inc. (SHO) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
SHO.N
-0.59%Positive
The earnings call summary shows mixed signals: strong financial metrics but weak guidance, labor disruptions, and weather impacts. Despite positive shareholder returns and a strong group booking outlook, cost inflation and regulatory delays pose challenges. The Q&A reveals uncertainties, such as reduced EBITDA projections and unclear asset sale expectations. The market cap suggests moderate volatility. Overall, these factors result in a neutral sentiment, with potential slight positive or negative movements within the -2% to 2% range over the next two weeks.