Choice Hotels (CHH) Q4 Earnings and Revenues Surpass Estimates

Core Viewpoint - Choice Hotels reported quarterly earnings of $1.55 per share, exceeding the Zacks Consensus Estimate of$ 1.50 per share, and showing an increase from $1.44 per share a year ago, indicating a 3.33% earnings surprise [1] - The company posted revenues of$ 389.77 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.12% and up from $358.4 million year-over-year [2] Earnings Performance - Over the last four quarters, Choice Hotels has surpassed consensus EPS estimates three times [2] - The company had a significant earnings surprise of 16.75% in the previous quarter, where it reported earnings of$ 2.23 per share against an expectation of $1.91 per share [1][2] Stock Performance and Outlook - Choice Hotels shares have increased approximately 4% since the beginning of the year, compared to a 4.5% gain in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is$ 1.40 on revenues of $344.37 million, and for the current fiscal year, it is$ 7.01 on revenues of $1.62 billion [7] Industry Context - The Hotels and Motels industry is currently ranked in the bottom 32% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the outlook for the industry can materially affect stock performance [5][8]