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Compared to Estimates, Choice Hotels (CHH) Q4 Earnings: A Look at Key Metrics

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For the quarter ended December 2024, Choice Hotels (CHH - Free Report) reported revenue of $389.77 million, up 8.8% over the same period last year. EPS came in at $1.55, compared to $1.44 in the year-ago quarter.

The reported revenue represents a surprise of +3.12% over the Zacks Consensus Estimate of $377.97 million. With the consensus EPS estimate being $1.50, the EPS surprise was +3.33%.

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:

  • RevPAR Growth: 4.5% compared to the 1.8% average estimate based on three analysts.
  • RevPAR: $50.51 compared to the $49.48 average estimate based on three analysts.
  • Rooms - Domestic Franchises: 511,739 versus the three-analyst average estimate of 496,427.
  • Occupancy: 53.6% compared to the 54.1% average estimate based on two analysts.
  • Total Franchise Rooms: 653,810 versus 641,044 estimated by two analysts on average.
  • Average Daily Rate (ADR): $94.32 versus $92.04 estimated by two analysts on average.
  • Revenues- Other revenues from franchised and managed properties: $200.80 million compared to the $190.37 million average estimate based on five analysts. The reported number represents a change of +10.6% year over year.
  • Revenues- Royalty, licensing and management fees: $120.14 million compared to the $121.07 million average estimate based on five analysts. The reported number represents a change of +2.8% year over year.
  • Revenues- Owned Hotels: $28.11 million compared to the $26.87 million average estimate based on five analysts. The reported number represents a change of +19.3% year over year.
  • Revenues- Initial franchise fees: $6.47 million versus the five-analyst average estimate of $6.67 million. The reported number represents a year-over-year change of -1.1%.
  • Revenues- Platform and procurement services fees: $17.69 million versus $17.72 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +4.5% change.
  • Revenues- Other revenues: $16.55 million versus the four-analyst average estimate of $14.58 million. The reported number represents a year-over-year change of +28.9%.
View all Key Company Metrics for Choice Hotels here>>>

Shares of Choice Hotels have returned +1.6% over the past month versus the Zacks S&P 500 composite's +2.6% 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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