Choice Hotels (CHH) Reports Q4: Everything You Need To Know Ahead Of Earnings

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Hotel franchisor Choice Hotels (NYSE: CHH) will be reporting results this Thursday before market hours. Here’s what you need to know.

Choice Hotels beat analysts’ revenue expectations by 7.6% last quarter, reporting revenues of $447.3 million, up 4.5% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

Is Choice Hotels a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Choice Hotels’s revenue to decline 5% year on year to $370.2 million, a reversal from the 8.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.54 per share.

Choice Hotels Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Choice Hotels has missed Wall Street’s revenue estimates six times over the last two years.

Looking at Choice Hotels’s peers in the consumer discretionary - travel and vacation providers segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Frontier posted flat year-on-year revenue, beating analysts’ expectations by 2.3%, and Hilton reported revenues up 10.9%, topping estimates by 3.3%. Frontier traded down 12% following the results while Hilton’s stock price was unchanged.

Read our full analysis of Frontier’s results here and Hilton’s results here.

Investors in the consumer discretionary - travel and vacation providers segment have had steady hands going into earnings, with share prices flat over the last month. Choice Hotels is up 5.8% during the same time and is heading into earnings with an average analyst price target of $108 (compared to the current share price of $110.01).

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