Sunstone Hotel Investors (SHO) Beats Q2 FFO Estimates

Financial Performance - Sunstone Hotel Investors reported quarterly funds from operations (FFO) of $0.28 per share, exceeding the Zacks Consensus Estimate of $0.27 per share, but down from $0.33 per share a year ago, representing an FFO surprise of 3.70% [1] - The company posted revenues of $247.48 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 3.01%, compared to year-ago revenues of $276.11 million [2] - Over the last four quarters, the company has surpassed consensus FFO estimates four times and topped consensus revenue estimates three times [2] Market Performance - Sunstone Hotel shares have declined approximately 10% since the beginning of the year, while the S&P 500 has gained 9.9% [3] - The current consensus FFO estimate for the coming quarter is $0.22 on revenues of $252.74 million, and for the current fiscal year, it is $0.90 on revenues of $976.24 million [7] Industry Outlook - The REIT and Equity Trust - Other industry is currently in the top 40% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The estimate revisions trend for Sunstone Hotel is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [6]