TH Earnings Prediction
The chart below shows how TH performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TH sees a -7.88% change in stock price 10 days leading up to the earnings, and a +8.97% change 10 days following the report. On the earnings day itself, the stock moves by +6.77%. This data can give you a slight idea of what to expect for the next quarter's release.
TH Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
83.69M
-33.70%
-12.08%
Gross Margin
39.53%
-14.51%
-8.90%
Operating Margin
25.31%
-36.69%
-19.55%
Net Margin
14.99%
-50.00%
-28.99%
EPS
0.12
-66.67%
-40.00%
No Data Available
TH Earnings Analysis
Target Hospitality Corp Corporation (TH.O) Earnings Conference Call
Positive
Network Capabilities and Financial Success: Target's 2024 results illustrate the benefits of established network capabilities and strong operating platform, supporting premium service offerings and strong financial results.
HFS Segment Growth: The HFS segment continues to benefit from consistent customer activity and constructive market dynamics, leading to the expansion of existing customer relationships and the addition of new customers.
Strategic Workforce Diversification: The recent multi-year workforce hub contract with Lithium Americas exemplifies Target's focus on strategic diversification initiatives and the ability to deliver on existing service offerings.
Community Reactivation Success: The reactivation of the Dilley community demonstrates Target's proven reputation and operational flexibility, allowing for a seamless response to customer demand.
Government Support Opportunities: The current administration's need for increased facility and hospitality solutions aligns with Target's existing capabilities, positioning the company to support critical U.S. Government initiatives.
Q4 Financial Performance: Target's financial results for Q4 2024 included total revenue of approximately $84 million and adjusted EBITDA of approximately $41 million, reflecting a strong operating model.
Government Segment Revenue Growth: The government segment produced quarterly revenue of approximately $44 million, with a new contract expected to provide over $246 million of revenue over its anticipated five-year term.
Strong Cash Position: Target ended the quarter with $191 million in cash and $366 million in total liquidity, demonstrating strong cash generation and a net leverage ratio of 0.0 times.
Shareholder Value Enhancement: The company returned approximately $33 million to shareholders through share repurchases, illustrating a commitment to value-enhancing opportunities for shareholders.
Interest Expense Savings: The redemption of all outstanding senior notes is expected to result in annual interest expense savings of $19.5 million, maintaining a balanced capital structure and financial flexibility.
Negative
Government Segment Revenue Decline: Decrease in government segment revenue by approximately $44 million due to lower PCC variable services revenue and no infrastructure revenue amortization, which was fully amortized as of November 2023.
Contract Termination Impact: Termination of the South Texas Family Residential Center contract effective August 9th, 2024, contributing to revenue decline.
Contract Cancellation and Costs: Cancellation of the PCC community contract effective February 21st, 2025, leading to a need for remarketing of assets and incurring carrying costs of approximately $2 million to $3 million per quarter.
Community Reactivation Uncertainty: Despite a strong financial position, the company is facing uncertainty with the outcomes of ongoing discussions regarding the reactivation of the West Texas community, which may not yield immediate results.
Revised Financial Outlook: The revised 2025 financial outlook reflects the impact of the PCC contract termination and is projected to be lower than previous expectations, with total revenue between $265 million and $285 million and adjusted EBITDA between $47 million and $57 million.
TH FAQs
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TH Earning Call Sentiment
Target Hospitality Corp. (TH) Q4 2024 Earnings Call Transcript
TH.O
3.19%Positive
The earnings call presents a mixed picture. Financial performance shows stability with strong cash position and no net debt, but revenue details are lacking, and certain revenue streams have declined. Share repurchase is a positive, yet termination of key contracts poses risks. The Q&A reveals uncertainties, particularly around new opportunities and economic advantages. Despite a solid financial base, the lack of clear guidance and unresolved risks balance out positives, leading to a neutral sentiment. Without market cap data, the impact on stock movement is uncertain, but no strong catalysts for significant change are evident.
