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Host Hotels (HST) Q1 FFO Beats Estimate, Revenues Grow

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Have you been eager to see how Host Hotels & Resorts Inc. (HST - Free Report) performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this Bethesda, MD – based hotel real estate investment trust’s (REIT) earnings release this morning:

A FFO Beat

Host Hotels came out with adjusted funds from operations ("FFO") of 44 cents per share, beating the Zacks Consensus Estimate of 39 cents.

Results reflect growth in comparable hotel revenues and improvement in margin.

How Was the Earnings Surprise Trend?

Host Hotels has a decent earnings surprise history. Before posting a beat in Q1, the company delivered positive surprise in three out of the prior four quarters, and in-line result in the other occasion, as shown in the chart below.
 

Overall, the company surpassed the Zacks Consensus Estimate by an average of 4.64% in the trailing four quarters.

Revenues Came Higher than Expected    

Host Hotels posted total revenues of nearly $1.35 billion, which beat the Zacks Consensus Estimate of $1.32 billion. It compared favorably with the year-ago number of $1.34 billion.

Key Developments to Note:

For full-year 2017, Host Hotels expects its adjusted FFO per share in a range of $1.60–$1.68, backed by comparable hotel revenue per available room (RevPAR) (constant U.S. dollar basis) growth of 0.0–2.0%.

What Zacks Rank Says

Host Hotels currently has a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

Check back later for our full write up on this HST earnings report later!


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