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Target Hospitality (TH) to Post Q1 Earnings: What's in Store?

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Target Hospitality Corp. (TH - Free Report) is scheduled to report first-quarter 2022 results on May 10. In the last reported quarter, the company posted an earnings surprise of 250%.

Q1 Estimates

The Zacks Consensus Estimate for first-quarter earnings is pegged at 1 cent against a loss of 14 cents reported in the prior-year quarter. The consensus mark for revenues stands at nearly $79.8 million, suggesting a gain of 75.4% from the prior-year quarter.

Factors to Note

Target Hospitality’s first-quarter performance is likely to have been driven by robust government services demand and strong business fundamentals. The Zacks Consensus Estimate for the company’s government revenues is pegged at $44.9 million, suggesting an improvement of 149.4% year over year. The company is also benefiting from a first-class customer base, premium service offerings and contract structure. With demand continuing in 2022, utilization rates have also been on the rise, driving profitability.

Target Hospitality Corp. Price and EPS Surprise Target Hospitality Corp. Price and EPS Surprise

Target Hospitality Corp. price-eps-surprise | Target Hospitality Corp. Quote

What the Zacks Model Unveils

Our proven model doesn’t predict an earnings beat for Target Hospitality this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. As you will see, that’s not the case here.

Target Hospitality has an Earnings ESP of 0.00% and a Zacks Rank #1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks Poised to Beat Earnings

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat:

Planet Fitness, Inc. (PLNT - Free Report) has an Earnings ESP of +22.68% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Planet Fitness have declined 4.3% in the past year. PLNT’s earnings surpassed the consensus mark once in the trailing four quarters, matched once and missed twice, the average surprise being 0.3%.

The Walt Disney Company (DIS - Free Report) has an Earnings ESP of +3.87% and a Zacks Rank #3.

Shares of Disney have declined 40.2% in the past year. DIS’ earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 67.8%.

Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +2.87% and a Zacks Rank #3.

Shares of Choice Hotels have gained 14.5% in the past year. CHH’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 15.3%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.