Sunstone Hotel (SHO) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - Sunstone Hotel Investors reported a revenue of $247.48 million for the quarter ended June 2024, reflecting a year-over-year decline of 10.4% and a surprise of -3.01% compared to the Zacks Consensus Estimate of $255.15 million [1] - The earnings per share (EPS) for the quarter was $0.28, an increase from $0.19 in the same quarter last year, resulting in an EPS surprise of +3.70% against the consensus estimate of $0.27 [1] Revenue and Earnings Metrics - Comparable Average Daily Rate (ADR) was $322.60, below the average estimate of $327.18 from two analysts [3] - Comparable Occupancy rate was 72.1%, lower than the estimated 74.5% by two analysts [4] - The number of hotels remained stable at 15, matching the average estimate [5] - The total number of rooms was 7,255, exceeding the average estimate of 6,991 [6] - Comparable Revenue per Available Room (RevPAR) was $232.59, significantly below the estimated $243.56 [7] Revenue Breakdown - Room revenues totaled $151.30 million, falling short of the five-analyst average estimate of $157.66 million, representing a year-over-year decline of 12.8% [8] - Other operating revenues were reported at $24.82 million, surpassing the average estimate of $21.97 million, with a year-over-year increase of 3.9% [9] - Food and beverage revenues reached $71.37 million, slightly above the estimated $71.03 million, but showed a year-over-year decrease of 9.5% [10] Stock Performance - Over the past month, shares of Sunstone Hotel have returned -4.8%, compared to a -5.9% change in the Zacks S&P 500 composite [11] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [11]