Target Hospitality Q4 Earnings & Revenues Beat Estimates, Stock Rises

Core Viewpoint - Target Hospitality Corp. reported fourth-quarter 2024 results with earnings and revenues exceeding Zacks Consensus Estimates, although both metrics declined year-over-year [1][3]. Financial Performance - Adjusted EPS for the quarter was 12 cents, surpassing the Zacks Consensus Estimate of 6 cents, but down from 29 cents in the prior-year quarter [3]. - Total revenues reached $83.7 million, exceeding the consensus estimate of $80 million by 4.5%, but reflecting a 33.7% decline year-over-year [3]. Segment Analysis - Government segment revenues were $43.7 million, down from $87.5 million in the year-ago quarter, with adjusted gross profit of $37.7 million compared to $65.7 million previously [4]. - Hospitality & Facilities Services - South segment revenues increased slightly to $36.7 million from $36.2 million year-over-year, with adjusted gross profit of $12.6 million compared to $12.4 million [5][6]. - All Other segment revenues rose to $3.3 million from $2.5 million in the prior-year quarter [6]. Operational Highlights - Average utilized beds increased to 5,474 from 5,105 year-over-year, while the average daily rate decreased to $72.14 from $76.58 [6]. - Selling, general and administrative expenses were $12.6 million, up from $12.2 million in the prior-year period [7]. - Net income for the quarter was $12.5 million, down from $37.8 million in the prior-year quarter, and adjusted EBITDA was $41.1 million compared to $67.7 million previously [7]. Balance Sheet - As of December 31, 2024, cash and cash equivalents stood at $190.7 million, an increase from $103.9 million as of December 31, 2023 [8]. Future Outlook - For 2025, the company anticipates revenues between $265 million and $285 million, with adjusted EBITDA expected in the range of $47 million to $57 million [9].