Extended Stay America, Inc.STAY 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 moving slightly downwards over the last 60 days. However, 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 9.95%. Meanwhile, revenues have also outpaced the Zacks Consensus Estimate in two of the trailing four quarters.
EXTENDED STAY Price and EPS Surprise
STAY currently has a Zacks Rank #4 (Sell) but that could change following Extended Stay's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings : STAY beats on earnings. Our consensus earnings estimate called for earnings per share of 28 cents, and the company reported earnings of 31 cents per share. Investors should note that these figures take out stock option expenses.
Revenues : STAY reported revenues of $332.8 million. This missed our consensus estimate of $341 million.
Key Stats to Note : Revenue per available room (RevPAR) increased 7% year over year, driven by an improvement in average daily rate (ADR) of 7.6%, however, somewhat offset by decreased occupancy. Meanwhile, hotel operating margin decreased 130 basis points (bps) to 55.8%.
Stock Price Impact : In-active in pre-market trading .
Check back later for our full write up on this STAY earnings report later!
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