Home Inns & Hotels Management
The 10-second takeaway
For the quarter ended March 31 (Q1), Home Inns & Hotels Management beat expectations on revenues and met expectations on earnings per share.
Compared with the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Home Inns & Hotels Management booked revenue of $187.2 million. The eight analysts polled by S&P Capital IQ expected a top line of $177.6 million on the same basis. GAAP reported sales were 72% higher than the prior-year quarter's $115.5 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 -$0.04. The four earnings estimates compiled by S&P Capital IQ anticipated -$0.04 per share. GAAP EPS were -$0.36 for Q1 versus $0.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.6%, 840 basis points worse than the prior-year quarter. Operating margin was -3.1%, 880 basis points worse than the prior-year quarter. Net margin was -8.2%, 1,250 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $209.5 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $859.6 million. The average EPS estimate is $0.69.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 479 members out of 544 rating the stock outperform, and 65 members rating it underperform. Among 129 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 102 give Home Inns & Hotels Management a green thumbs-up, and 27 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Home Inns & Hotels Management is outperform, with an average price target of $40.06.
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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. He is the 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 don't 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.