Extended Stay America, Inc. operates hotels in the United States and Canada. The company operates under the Extended Stay America brand, Extended Stay Canada brand and the Crossland Economy Studios brand.
The transformational initiatives undertaken by Extended Stay have been boosting revenue per available room (RevPAR) at its properties. These initiatives include better service, improving margins through operational efficiency, increasing brand awareness through targeted marketing efforts and upgrading properties to optimize returns. However, renovation of the company’s properties has hurt occupancy rate due to displacement.
Investors should note that the consensus estimate for STAY has moved down over the last 60 days. Meanwhile, STAY’s earnings have been strong over the past few quarters. In fact, the company posted positive earnings surprises in all of the last four quarters, with an average beat of 16.95%. Revenues have also outpaced the Zacks Consensus Estimate in two of the trailing four quarters.
STAY currently has a Zacks Rank #3 (Hold) but that could change following Extended Stay’s earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Extended Stay America, Inc. Price and EPS Surprise
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: STAY beats on earnings. Our consensus earnings estimate called for earnings per share of 12 cents, and the company reported earnings of 15 cents per share. Investors should note that these figures take out stock option expenses.
Revenues: STAY reported revenues of $291 million. This surpassed our consensus estimate of $290 million.
Key Stats to Note: Revenue per available room (RevPAR) increased 2.1% year over year in first-quarter 2017, driven by an improvement in average daily rate (ADR) of 0.8% and increased occupancy. Meanwhile, hotel operating margin increased 210 basis points (bps) to 52.5%.
Stock Price Impact: In-active in pre-market trading.
Check back later for our full write up on this STAY earnings report!
Looking for Ideas with Even Greater Upside?
Most of Zacks’ investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more.
Click here for a peek at this private information>>
Image: Bigstock
Extended Stay (STAY) Tops Q1 Earnings & Revenue Estimates
Extended Stay America, Inc. operates hotels in the United States and Canada. The company operates under the Extended Stay America brand, Extended Stay Canada brand and the Crossland Economy Studios brand.
The transformational initiatives undertaken by Extended Stay have been boosting revenue per available room (RevPAR) at its properties. These initiatives include better service, improving margins through operational efficiency, increasing brand awareness through targeted marketing efforts and upgrading properties to optimize returns. However, renovation of the company’s properties has hurt occupancy rate due to displacement.
Investors should note that the consensus estimate for STAY has moved down over the last 60 days. Meanwhile, STAY’s earnings have been strong over the past few quarters. In fact, the company posted positive earnings surprises in all of the last four quarters, with an average beat of 16.95%. Revenues have also outpaced the Zacks Consensus Estimate in two of the trailing four quarters.
STAY currently has a Zacks Rank #3 (Hold) but that could change following Extended Stay’s earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Extended Stay America, Inc. Price and EPS Surprise
Extended Stay America, Inc. Price and EPS Surprise | Extended Stay America, Inc. Quote
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: STAY beats on earnings. Our consensus earnings estimate called for earnings per share of 12 cents, and the company reported earnings of 15 cents per share. Investors should note that these figures take out stock option expenses.
Revenues: STAY reported revenues of $291 million. This surpassed our consensus estimate of $290 million.
Key Stats to Note: Revenue per available room (RevPAR) increased 2.1% year over year in first-quarter 2017, driven by an improvement in average daily rate (ADR) of 0.8% and increased occupancy. Meanwhile, hotel operating margin increased 210 basis points (bps) to 52.5%.
Stock Price Impact: In-active in pre-market trading.
Check back later for our full write up on this STAY earnings report!
Looking for Ideas with Even Greater Upside?
Most of Zacks’ investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more.
Click here for a peek at this private information>>