Choice Hotels International
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Choice Hotels International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share contracted. GAAP earnings per share dropped.
Gross margins dropped, operating margins expanded, net margins dropped.
Choice Hotels International recorded revenue of $178.3 million. The 10 analysts polled by S&P Capital IQ expected revenue of $173.5 million on the same basis. GAAP reported sales were 7.5% higher than the prior-year quarter's $165.9 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 $0.45. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.41 per share. Non-GAAP EPS of $0.45 for Q4 were 2.2% lower than the prior-year quarter's $0.46 per share. GAAP EPS of $0.41 for Q4 were 2.4% lower than the prior-year quarter's $0.42 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 89.4%, 110 basis points worse than the prior-year quarter. Operating margin was 27.7%, 50 basis points better than the prior-year quarter. Net margin was 13.7%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $135.4 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $728.5 million. The average EPS estimate is $1.97.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 69 members out of 91 rating the stock outperform, and 22 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give Choice Hotels International a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Choice Hotels International is hold, with an average price target of $31.59.
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