China Lodging Group
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), China Lodging Group met expectations on revenues and missed slightly on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share shrank.
Margins shrank across the board.
China Lodging Group reported revenue of $103.2 million. The seven analysts polled by S&P Capital IQ wanted to see revenue of $103.0 million on the same basis. GAAP reported sales were 50% higher than the prior-year quarter's $68.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.08. The four earnings estimates compiled by S&P Capital IQ forecast $0.08 per share. GAAP EPS of $0.08 for Q4 were 11% lower than the prior-year quarter's $0.09 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.1%, 450 basis points worse than the prior-year quarter. Operating margin was 5.3%, 150 basis points worse than the prior-year quarter. Net margin was 4.9%, 280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $94.6 million. On the bottom line, the average EPS estimate is -$0.05.
Next year's average estimate for revenue is $484.4 million. The average EPS estimate is $0.46.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 33 members out of 49 rating the stock outperform, and 16 members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give China Lodging Group a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on China Lodging Group is outperform, with an average price target of $20.52.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.