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 +1.51% change in stock price 10 days leading up to the earnings, and a +1.97% change 10 days following the report. On the earnings day itself, the stock moves by +0.01%. 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
214.77M
-2.03%
-5.13%
Gross Margin
44.89%
-5.05%
-3.36%
Operating Margin
5.40%
-37.28%
-29.13%
Net Margin
0.39%
-99.33%
-72.92%
EPS
-0.02
-103.33%
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No Data Available
SHO Earnings Analysis
Sunstone Hotel Investors Inc Corporation (SHO.N) Earnings Conference Call
Positive
Strong Performance Indicators: Despite missing earnings expectations, the company reported full-year adjusted EBITDA and adjusted FFO per share at the high end of guidance, indicating strong overall performance.
Strategic Acquisition Investment: The acquisition of the Hyatt Regency San Antonio Riverwalk for $222 million reflects a strategic investment with a 9% capitalization rate, showcasing the company's ability to identify valuable opportunities.
Hotel Conversion Success: The company successfully completed the conversion of the Marriott Long Beach Downtown and is nearing the opening of the Andaz Miami Beach, both of which are expected to enhance revenue generation in 2025.
Shareholder Capital Return: In 2024, Sunstone returned nearly $100 million to shareholders through dividends and share repurchases, demonstrating a commitment to returning capital to investors.
Group Business Performance: The portfolio showed strong performance in group business, with significant RevPAR growth at the Westin Washington D.C. Downtown and the Hyatt Regency San Antonio Riverwalk, indicating robust demand in key markets.
Strong Liquidity Position: The company maintains a strong liquidity position with nearly $700 million in total liquidity, providing flexibility for future investments and capital returns.
Portfolio RevPAR Growth Projections: For 2025, the company projects total portfolio RevPAR growth of 7% to 10%, with adjusted EBITDAre expected to range from $245 million to $270 million, reflecting positive growth expectations.
Capital Investment Impact: The planned capital investments for 2025 are expected to result in less earnings disruption compared to previous years, allowing the company to benefit from completed projects.
Negative
Earnings Miss Report: Sunstone Hotel Investors, Inc. missed earnings expectations with a reported EPS of $0.00418, significantly below the expected $0.14.
Performance Challenges: The company faced several headwinds during the fourth quarter, which impacted overall performance.
Minimal Revenue Growth Decline: Despite some positive trends, the overall revenue growth was minimal, leading to a decline in margins by 70 basis points, even when excluding certain hotels affected by renovations and strikes.
Project Delays Impact Earnings: The Andaz Miami Beach project experienced delays due to a challenging permitting and approval process, which could affect the anticipated ramp-up in earnings.
Capital Investment Decline: The capital investment activity for 2025 is expected to be lower than in previous years, which may limit growth opportunities.
Declining Interest Income: The company anticipates generating less interest income on cash balances in 2025 compared to 2024, impacting overall financial performance.
SHO FAQs
How does SHO typically perform around its earnings report dates?
Is Sunstone Hotel Investors Inc (SHO) Q4 2024 Earnings Call Summary positive or negative?
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SHO Earning Call Sentiment
Sunstone Hotel Investors, Inc. (NYSE:SHO) Q4 2024 Earnings Call Transcript
SHO.N
-2.6%Positive
The company missed earnings expectations significantly, with EPS much lower than anticipated, which is a strong negative indicator. Additionally, the RevPAR guidance for 2024 indicates a decline, and there are concerns about rising costs and regulatory challenges. Despite positive shareholder return actions, the overall sentiment is negative due to financial performance concerns and uncertain future guidance. The market cap suggests a moderate reaction, leading to a predicted negative stock price movement of -2% to -8%.
