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Extended Stay America (STAY) to Post Q3 Earnings: What's Up?

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Extended Stay America, Inc. (STAY - Free Report) is scheduled to report third-quarter 2019 results on Nov 6, after the closing bell. In the last reported quarter, the company’s missed the Zacks Consensus Estimate by 3%.

Q3 Expectations

The Zacks Consensus Estimate for third-quarter earnings is pegged at 35 cents, lower than 39 cents reported in the prior-year quarter. Over the past 30 days, the company’s earnings estimates have witnessed downward revision by a penny. For revenues, the consensus mark is pegged at $331 million, suggesting decline of 5.9% from the year-ago quarter reported figure.

Factors at Play

Decline in room revenues and decrease in comparable system-wide RevPAR are expected to have impacted third-quarter results. The Zacks Consensus Estimate for room revenues is pegged at $317 million, down 7% year over year. Moreover, the company’s bottom line is likely to reflect increase in expenses from its franchise operations.

However, Extended Stay America’s efforts to drive revenue per available room by providing suitable services to value-conscious business travelers have been encouraging. Consequently, this is likely to get reflected in the third-quarter results.

Extended Stay America, Inc. Price and EPS Surprise

 

What Does the Zacks Model Say

Our proven model does not conclusively predict an earnings beat for Extended Stay America this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.  

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Extended Stay America has a Zacks Rank #4 (Sell) and an Earnings ESP of -2.16%.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat.

Lululemon Athletica Inc. (LULU - Free Report) has a Zacks Rank #2 and an Earnings ESP of +1.54%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Under Armour, Inc. (UAA - Free Report) has a Zacks Rank #3 and an Earnings ESP of +9.37%.

Ralph Lauren Corporation (RL - Free Report) has a Zacks Rank #3 and an Earnings ESP of +0.21%.

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