Home Inns & Hotels Management
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Home Inns & Hotels Management beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded.
Margins shrank across the board.
Home Inns & Hotels Management chalked up revenue of $240.9 million. The seven analysts polled by S&P Capital IQ anticipated sales of $230.0 million on the same basis. GAAP reported sales were 64% higher than the prior-year quarter's $154.8 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 $0.23. The three earnings estimates compiled by S&P Capital IQ anticipated $0.36 per share. GAAP EPS of $0.12 for Q3 were 20% higher than the prior-year quarter's $0.10 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 33.8%, 710 basis points worse than the prior-year quarter. Operating margin was 9.1%, 510 basis points worse than the prior-year quarter. Net margin was 2.1%, 1,450 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $222.5 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $859.9 million. The average EPS estimate is $0.64.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 470 members out of 534 rating the stock outperform, and 64 members rating it underperform. Among 111 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give Home Inns & Hotels Management a green thumbs-up, and 26 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 $32.73.
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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. The Motley Fool has no positions in the stocks mentioned above. 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.