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Choice Hotels (CHH) to Report Q2 Earnings: What to Expect?
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Choice Hotels International, Inc. (CHH - Free Report) is scheduled to report second-quarter 2023 results on Aug 8, 2023, before the opening bell.
In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 3.7% and 4.9%, respectively. Earnings and revenues increased 8.7% and 29.1% from the year-ago quarter’s figures, respectively.
CHH topped the consensus mark in two of the last four quarters and missed on other two occasions, the average beat being 1.7%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pegged at $1.70, indicating an improvement of 18.9% from $1.43 reported in the year-ago quarter.
The consensus mark for revenues is pegged at $422.6 million, suggesting an increase of 14.8% from the prior-year quarter’s reported figure.
Choice Hotels International, Inc. Price and EPS Surprise
Choice Hotels’ second-quarter top line is expected to have increased year over year on the back of solid business travel bookings, and continuous expansion through acquisitions and franchise agreements. Also, its focus on the loyalty program and enhancement of the mid-scale brand is likely to have aided the company’s performance in the to-be-reported quarter.
Per our model, second-quarter Royalty, Licensing and Management Fees and Other Revenues from Franchised and Managed Properties are estimated to be $133.8 million and $214.8 million, up 10.2% and 13.4% year over year, respectively.
The improved group travel demand is likely to have added positively to its second-quarter performance. Our model predicts system-wide — RevPAR to be $59.26 compared with $58.89 reported in the year-ago quarter. Also, we expect occupancy rates to increase by 70 basis points (bps) to 62.5% compared with the prior-year quarter’s levels.
However, increased investments in expansion and operating expenses are likely to have hurt the company’s bottom line in the to-be-reported quarter. Our model predicts total operating expenses in second-quarter to be at $305.2 million, up 42.7% from $213.9 million a year ago.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for CHH for the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: CHH has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CHH currently sports a Zacks Rank #4 (Sell).
Stocks Poised to Beat on Earnings
Here are a few stocks from the broader Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to beat on earnings this season:
WYNN’s earnings for the to-be-reported quarter are expected to increase 162.2%. The company reported better-than-expected earnings in two of the trailing four quarters, missed the mark once and remained flat on the remaining one occasion, the average surprise being 67.2%.
The Honest Company, Inc. (HNST - Free Report) has an Earnings ESP of +18.52% and a Zacks Rank of 2.
HNST’s earnings for the to-be-reported quarter are expected to decline 27.3%. The company reported missed earnings in the last four quarters, the average negative surprise being 61.5%.
SciPlay Corporation has an Earnings ESP of +10.53% and a Zacks Rank of 2.
SCPL is expected to register a 17.4% increase in earnings for the to-be-reported quarter. Notably, the company reported better-than-expected earnings in one of the trailing four quarters, missed the mark twice and remained flat on the remaining one occasion, the average negative surprise being 0.8%.
Image: Bigstock
Choice Hotels (CHH) to Report Q2 Earnings: What to Expect?
Choice Hotels International, Inc. (CHH - Free Report) is scheduled to report second-quarter 2023 results on Aug 8, 2023, before the opening bell.
In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 3.7% and 4.9%, respectively. Earnings and revenues increased 8.7% and 29.1% from the year-ago quarter’s figures, respectively.
CHH topped the consensus mark in two of the last four quarters and missed on other two occasions, the average beat being 1.7%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pegged at $1.70, indicating an improvement of 18.9% from $1.43 reported in the year-ago quarter.
The consensus mark for revenues is pegged at $422.6 million, suggesting an increase of 14.8% from the prior-year quarter’s reported figure.
Choice Hotels International, Inc. Price and EPS Surprise
Choice Hotels International, Inc. price-eps-surprise | Choice Hotels International, Inc. Quote
Factors to Note
Choice Hotels’ second-quarter top line is expected to have increased year over year on the back of solid business travel bookings, and continuous expansion through acquisitions and franchise agreements. Also, its focus on the loyalty program and enhancement of the mid-scale brand is likely to have aided the company’s performance in the to-be-reported quarter.
Per our model, second-quarter Royalty, Licensing and Management Fees and Other Revenues from Franchised and Managed Properties are estimated to be $133.8 million and $214.8 million, up 10.2% and 13.4% year over year, respectively.
The improved group travel demand is likely to have added positively to its second-quarter performance. Our model predicts system-wide — RevPAR to be $59.26 compared with $58.89 reported in the year-ago quarter. Also, we expect occupancy rates to increase by 70 basis points (bps) to 62.5% compared with the prior-year quarter’s levels.
However, increased investments in expansion and operating expenses are likely to have hurt the company’s bottom line in the to-be-reported quarter. Our model predicts total operating expenses in second-quarter to be at $305.2 million, up 42.7% from $213.9 million a year ago.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for CHH for the quarter to be reported. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: CHH has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CHH currently sports a Zacks Rank #4 (Sell).
Stocks Poised to Beat on Earnings
Here are a few stocks from the broader Zacks Consumer Discretionary sector, which according to our model, have the right combination of elements to beat on earnings this season:
Wynn Resorts, Limited (WYNN - Free Report) has an Earnings ESP of +47.78% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
WYNN’s earnings for the to-be-reported quarter are expected to increase 162.2%. The company reported better-than-expected earnings in two of the trailing four quarters, missed the mark once and remained flat on the remaining one occasion, the average surprise being 67.2%.
The Honest Company, Inc. (HNST - Free Report) has an Earnings ESP of +18.52% and a Zacks Rank of 2.
HNST’s earnings for the to-be-reported quarter are expected to decline 27.3%. The company reported missed earnings in the last four quarters, the average negative surprise being 61.5%.
SciPlay Corporation has an Earnings ESP of +10.53% and a Zacks Rank of 2.
SCPL is expected to register a 17.4% increase in earnings for the to-be-reported quarter. Notably, the company reported better-than-expected earnings in one of the trailing four quarters, missed the mark twice and remained flat on the remaining one occasion, the average negative surprise being 0.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.