Host Hotels & Resorts Inc.
) is anticipated to beat the expectations while reporting its
fourth-quarter 2012 results before the opening bell on Thursday,
Why a Likely Positive Surprise?
Our proven model shows that Host Hotels is likely to beat
earnings since it has the appropriate combination of the
following 2 key ingredients:
Positive Zacks ESP:
Earnings ESP (Read: Zacks Earnings ESP: A Better Method), which
represents the difference between the Most Accurate Estimate and
the Zacks Consensus Estimate, is +5.41%. This indicates a likely
positive earnings surprise.
Zacks Rank #3 (Hold):
This increases the predictive power of its ESP. The combination
of its Zacks Rank and Earnings ESP assures us of a positive
earnings surprise in the to-be-reported quarter.
Stocks with Zacks Ranks of #1, #2 and #3 have significantly
higher chances of beating the earnings estimates. The sell rated
stocks (#4 and #5) should never be considered going into an
Host Hotels - the largest lodging real estate investment trust
(REIT) in U.S. - has luxury and upper upscale hotels across
hard-to-replicate areas, which have the potential for significant
capital appreciation. Benefiting from this, the company has been
performing favorably and has delivered an average earnings
surprise of 5.60% over the last 4 quarters.
Also, Host Hotels has been consistently making concerted
efforts towards increasing shareholders wealth and accordingly,
it hiked its dividend payout for the eighth time in a row during
the fourth quarter.
Consistent with the upgradation of its overall portfolio, Host
Hotels maintained focus on portfolio restructuring activity
during the fourth quarter. Notable among these are completion of
a joint venture (JV) deal with
Hyatt Hotels Corp.
) for a vacation ownership project and the acquisition of 5
hotels in Europe through a JV deal.
In addition, the sale of a
Marriott International, Inc.
) property is a significant transaction in this respect. We
expect this to provide Host Hotels with a relatively steady
source of revenue and prove accretive to its fourth-quarter
HYATT HOTELS CP (H): Free Stock Analysis
HOST HOTEL&RSRT (HST): Free Stock Analysis
MARRIOTT INTL-A (MAR): Free Stock Analysis
PUBLIC STORAGE (PSA): Free Stock Analysis
To read this article on Zacks.com click here.
Other Stocks to Consider
Here is another REIT that you may want to consider as our model
shows it has the right combination of elements to post an
earnings beat this season:
) has an Earnings ESP of +0.57% and carries a Zacks Rank #3. The
company is scheduled to report its earnings on Feb 21, after the