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Host Hotels (HST) to Post Q4 Earnings: What's in the Cards?
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Host Hotels & Resorts, Inc. (HST - Free Report) is scheduled to release fourth-quarter and full-year 2022 earnings on Feb 15, after market close. HST’s quarterly results are likely to exhibit year-over-year growth in revenues and funds from operations (FFO) per share.
In the previous quarter, the Bethesda, MD-based lodging real estate investment trust (REIT) delivered a negative surprise of 2.56% in terms of adjusted FFO per share. Although the results reflected better-than-anticipated top-line growth, lower all-owned-hotel average occupancy levels compared with third-quarter 2019 posed a concern.
Over the trailing four quarters, Host Hotels’ adjusted FFO per share surpassed estimates on three occasions and missed the same once, the average beat being 36.77%. The graph below depicts this surprise history:
Host Hotels & Resorts, Inc. Price and EPS Surprise
Host Hotels is likely to have benefited from its premium portfolio of upscale hotels across the attractive markets of the United States. The continued recovery in leisure travel demand in the Sunbelt markets and Hawaii region is expected to have aided the demand for this lodging REIT’s well-located properties.
Also, with several companies implementing return-to-office policies and face-to-face conferences picking up, HST is likely to have witnessed a ramp-up in business transient and group demand for its urban and downtown hotels.
The Zacks Consensus Estimate for quarterly RevPAR stands at $211.9, indicating a jump of 42.7% from the year-ago quarter’s reported figure of $148.5. The consensus mark for the average occupancy rate is pegged at 72%, suggesting an improvement of 26% from the prior-year quarter’s reported figure of 57%.
Host Hotels is expected to have remained focused on strategic acquisitions to improve its overall portfolio quality. In November 2022, it acquired the Four Seasons Resort and Residences Jackson Hole, a 125-room luxury resort located in Jackson Hole, WY, for $315 million in cash.
The Zacks Consensus Estimate for HST’s fourth-quarter revenues is presently pegged at $1.25 billion, implying growth of 25% from the prior-year period’s reported figure of $998 million.
However, the impact of Hurricane Ian is likely to have cast a pall on the company’s performance.
As a result, HST expected full-year 2022 revenues to decline by around $42 million, of which $36 million is likely to be realized in fourth-quarter 2022.
The all-owned hotel RevPAR is estimated to decline by 70 basis points (bps) for 2022, but have a 250 bps impact in fourth-quarter 2022. Net income and adjusted EBITDAre are anticipated to fall by $20 million, of which $17 million is expected in fourth-quarter 2022.
HST projected all owned-hotel RevPAR for full-year 2022 in the range of $193-$195 million. The consensus mark for 2022 RevPAR is pegged at $197.7.
Host Hotels’ activities during the quarter were not adequate to garner analysts’ confidence. The Zacks Consensus Estimate for the FFO per share has been revised 2.3% downward over the past month to 43 cents. The figure, however, implies a year-over-year jump of 48.3%.
For 2022, HST projected adjusted FFO to lie in the range of $1.75-$1.79.
For the full year, the Zacks Consensus Estimate for FFO per share has been revised marginally downward to $1.78 over the past month. Nonetheless, the figure indicates a significant increase from the prior-year quarter’s reported figure on revenues of $4.89 billion.
Earning Whispers
Our proven model does not conclusively predict a surprise in terms of FFO per share for HST this season. The combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — increases the odds of a beat. However, that’s not the case here.
Earnings ESP: Host Hotels has an Earnings ESP of -1.82%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Host Hotels currently carries a Zacks Rank #4 (Sell).
Here are some stocks that are worth considering from the REIT sector, as our model shows that these have the right combination of elements to deliver a surprise this reporting cycle:
Digital Realty Trust (DLR - Free Report) is scheduled to report quarterly figures on Feb 16. DLR has an Earnings ESP of +0.99 % and a Zacks Rank #3 currently.
Park Hotels & Resorts (PK - Free Report) is scheduled to report quarterly figures on Feb 22. PK has an Earnings ESP of +3.66% and a Zacks Rank of 3 currently.
VICI Properties (VICI - Free Report) is scheduled to report quarterly figures on Feb 23. VICI has an Earnings ESP of +0.29% and a Zacks Rank #2 currently.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Host Hotels (HST) to Post Q4 Earnings: What's in the Cards?
Host Hotels & Resorts, Inc. (HST - Free Report) is scheduled to release fourth-quarter and full-year 2022 earnings on Feb 15, after market close. HST’s quarterly results are likely to exhibit year-over-year growth in revenues and funds from operations (FFO) per share.
In the previous quarter, the Bethesda, MD-based lodging real estate investment trust (REIT) delivered a negative surprise of 2.56% in terms of adjusted FFO per share. Although the results reflected better-than-anticipated top-line growth, lower all-owned-hotel average occupancy levels compared with third-quarter 2019 posed a concern.
Over the trailing four quarters, Host Hotels’ adjusted FFO per share surpassed estimates on three occasions and missed the same once, the average beat being 36.77%. The graph below depicts this surprise history:
Host Hotels & Resorts, Inc. Price and EPS Surprise
Host Hotels & Resorts, Inc. price-eps-surprise | Host Hotels & Resorts, Inc. Quote
Factors at Play
Host Hotels is likely to have benefited from its premium portfolio of upscale hotels across the attractive markets of the United States. The continued recovery in leisure travel demand in the Sunbelt markets and Hawaii region is expected to have aided the demand for this lodging REIT’s well-located properties.
Also, with several companies implementing return-to-office policies and face-to-face conferences picking up, HST is likely to have witnessed a ramp-up in business transient and group demand for its urban and downtown hotels.
The Zacks Consensus Estimate for quarterly RevPAR stands at $211.9, indicating a jump of 42.7% from the year-ago quarter’s reported figure of $148.5. The consensus mark for the average occupancy rate is pegged at 72%, suggesting an improvement of 26% from the prior-year quarter’s reported figure of 57%.
Host Hotels is expected to have remained focused on strategic acquisitions to improve its overall portfolio quality. In November 2022, it acquired the Four Seasons Resort and Residences Jackson Hole, a 125-room luxury resort located in Jackson Hole, WY, for $315 million in cash.
The Zacks Consensus Estimate for HST’s fourth-quarter revenues is presently pegged at $1.25 billion, implying growth of 25% from the prior-year period’s reported figure of $998 million.
However, the impact of Hurricane Ian is likely to have cast a pall on the company’s performance.
As a result, HST expected full-year 2022 revenues to decline by around $42 million, of which $36 million is likely to be realized in fourth-quarter 2022.
The all-owned hotel RevPAR is estimated to decline by 70 basis points (bps) for 2022, but have a 250 bps impact in fourth-quarter 2022. Net income and adjusted EBITDAre are anticipated to fall by $20 million, of which $17 million is expected in fourth-quarter 2022.
HST projected all owned-hotel RevPAR for full-year 2022 in the range of $193-$195 million. The consensus mark for 2022 RevPAR is pegged at $197.7.
Host Hotels’ activities during the quarter were not adequate to garner analysts’ confidence. The Zacks Consensus Estimate for the FFO per share has been revised 2.3% downward over the past month to 43 cents. The figure, however, implies a year-over-year jump of 48.3%.
For 2022, HST projected adjusted FFO to lie in the range of $1.75-$1.79.
For the full year, the Zacks Consensus Estimate for FFO per share has been revised marginally downward to $1.78 over the past month. Nonetheless, the figure indicates a significant increase from the prior-year quarter’s reported figure on revenues of $4.89 billion.
Earning Whispers
Our proven model does not conclusively predict a surprise in terms of FFO per share for HST this season. The combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher — increases the odds of a beat. However, that’s not the case here.
Earnings ESP: Host Hotels has an Earnings ESP of -1.82%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Host Hotels currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks That Warrant a Look
Here are some stocks that are worth considering from the REIT sector, as our model shows that these have the right combination of elements to deliver a surprise this reporting cycle:
Digital Realty Trust (DLR - Free Report) is scheduled to report quarterly figures on Feb 16. DLR has an Earnings ESP of +0.99 % and a Zacks Rank #3 currently.
Park Hotels & Resorts (PK - Free Report) is scheduled to report quarterly figures on Feb 22. PK has an Earnings ESP of +3.66% and a Zacks Rank of 3 currently.
VICI Properties (VICI - Free Report) is scheduled to report quarterly figures on Feb 23. VICI has an Earnings ESP of +0.29% and a Zacks Rank #2 currently.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.