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Choice Hotels (CHH) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
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For the quarter ended June 2023, Choice Hotels (CHH - Free Report) reported revenue of $427.42 million, up 16.2% over the same period last year. EPS came in at $1.75, compared to $1.43 in the year-ago quarter.
The reported revenue represents a surprise of +1.15% over the Zacks Consensus Estimate of $422.58 million. With the consensus EPS estimate being $1.70, the EPS surprise was +2.94%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Choice Hotels performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Rooms - Domestic Franchises: 494135 versus 494479 estimated by two analysts on average.
Revenues- Other revenues from franchised and managed properties: $214.30 million compared to the $211.75 million average estimate based on four analysts.
Revenues- Royalty, licensing and management fees: $140.50 million compared to the $137.80 million average estimate based on four analysts. The reported number represents a change of +15.7% year over year.
Revenues- Owned Hotels: $25.50 million versus the four-analyst average estimate of $23.26 million. The reported number represents a year-over-year change of +48.4%.
Revenues- Initial franchise fees: $7.16 million compared to the $7.39 million average estimate based on four analysts. The reported number represents a change of +15.1% year over year.
Revenues- Platform and procurement services fees: $28.80 million versus $25.04 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +32.1% change.
Revenues- Other revenues: $11.15 million compared to the $14.43 million average estimate based on three analysts. The reported number represents a change of -6.5% year over year.
Shares of Choice Hotels have returned +6.8% over the past month versus the Zacks S&P 500 composite's +2.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Choice Hotels (CHH) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
For the quarter ended June 2023, Choice Hotels (CHH - Free Report) reported revenue of $427.42 million, up 16.2% over the same period last year. EPS came in at $1.75, compared to $1.43 in the year-ago quarter.
The reported revenue represents a surprise of +1.15% over the Zacks Consensus Estimate of $422.58 million. With the consensus EPS estimate being $1.70, the EPS surprise was +2.94%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Choice Hotels performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Rooms - Domestic Franchises: 494135 versus 494479 estimated by two analysts on average.
- Revenues- Other revenues from franchised and managed properties: $214.30 million compared to the $211.75 million average estimate based on four analysts.
- Revenues- Royalty, licensing and management fees: $140.50 million compared to the $137.80 million average estimate based on four analysts. The reported number represents a change of +15.7% year over year.
- Revenues- Owned Hotels: $25.50 million versus the four-analyst average estimate of $23.26 million. The reported number represents a year-over-year change of +48.4%.
- Revenues- Initial franchise fees: $7.16 million compared to the $7.39 million average estimate based on four analysts. The reported number represents a change of +15.1% year over year.
- Revenues- Platform and procurement services fees: $28.80 million versus $25.04 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +32.1% change.
- Revenues- Other revenues: $11.15 million compared to the $14.43 million average estimate based on three analysts. The reported number represents a change of -6.5% year over year.
View all Key Company Metrics for Choice Hotels here>>>Shares of Choice Hotels have returned +6.8% over the past month versus the Zacks S&P 500 composite's +2.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.