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 been stable 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 8.16%. 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.
We have highlighted some of the key stats from this just-revealed announcement below:
EXTENDED STAY Price and EPS Surprise
Earnings: STAY beats on earnings. Our consensus earnings estimate called for earnings per share of 34 cents, and the company reported earnings of 36 cents per share. Investors should note that these figures take out stock option expenses.
Revenues: STAY reported revenues of $354.5 million. This surpassed our consensus estimate of $352.4 million.
Key Stats to Note: Revenue per available room (RevPAR) increased 7.5% year over year in third-quarter 2016, driven by an improvement in average daily rate (ADR) of 6.0% and increased occupancy. Meanwhile, hotel operating margin increased 220 basis points (bps) to 58.4%.
Stock Price Impact: In-active in pre-market trading.
Check back later for our full write up on this STAY earnings report!
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Extended Stay (STAY) Tops Q3 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 been stable 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 8.16%. 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.
We have highlighted some of the key stats from this just-revealed announcement below:
EXTENDED STAY Price and EPS Surprise
EXTENDED STAY Price and EPS Surprise | EXTENDED STAY Quote
Earnings: STAY beats on earnings. Our consensus earnings estimate called for earnings per share of 34 cents, and the company reported earnings of 36 cents per share. Investors should note that these figures take out stock option expenses.
Revenues: STAY reported revenues of $354.5 million. This surpassed our consensus estimate of $352.4 million.
Key Stats to Note: Revenue per available room (RevPAR) increased 7.5% year over year in third-quarter 2016, driven by an improvement in average daily rate (ADR) of 6.0% and increased occupancy. Meanwhile, hotel operating margin increased 220 basis points (bps) to 58.4%.
Stock Price Impact: In-active in pre-market trading.
Check back later for our full write up on this STAY earnings report!
Confidential from Zacks
Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>