Choice Hotels (CHH) Lags Q1 Earnings and Revenue Estimates

Core Insights - Choice Hotels reported quarterly earnings of $1.34 per share, missing the Zacks Consensus Estimate of $1.38 per share, but showing an increase from $1.28 per share a year ago, resulting in an earnings surprise of -2.90% [1] - The company posted revenues of $332.86 million for the quarter, missing the Zacks Consensus Estimate by 4.11%, and showing a slight increase from $331.95 million year-over-year [2] - The stock has underperformed, losing about 11.4% since the beginning of the year compared to the S&P 500's decline of -4.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.86 on revenues of $450.8 million, and for the current fiscal year, it is $6.84 on revenues of $1.64 billion [7] - The estimate revisions trend for Choice Hotels is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Hotels and Motels industry is currently in the bottom 41% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8] - H World Group, another company in the same industry, is expected to report quarterly earnings of $0.42 per share, reflecting a year-over-year change of +44.8% [9]