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What: Shares of Home Inns & Hotels Management
So what: Revenue increased 66% from a year ago to $199.4 million, and the company reported a net loss of $14.8 million, or $0.18 per share. Analysts had expected revenue of $183.6 million and a loss of $0.03 per share.
Now what: Revenue growth was impressive, but I'm more worried about the loss on the bottom line. EBITDA was also down significantly from a year ago, so the company isn't squeezing as much out of the business as it used to. Analysts expect the bottom line to turn around quickly and for the company to post $1.04 per share in earnings during 2012, but I'd like to see some bottom-line results before buying into this growth story.
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Fool contributor Travis Hoium has no position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw.
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