Sotherly Hotels (SOHO) Beats Q1 FFO and Revenue Estimates

Core Viewpoint - Sotherly Hotels (SOHO) reported quarterly funds from operations (FFO) of $0.19 per share, exceeding the Zacks Consensus Estimate of $0.16 per share, but down from $0.20 per share a year ago, indicating an FFO surprise of 18.75% [1] Financial Performance - The company achieved revenues of $48.31 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.92% and up from $46.55 million year-over-year [2] - Over the last four quarters, Sotherly Hotels has exceeded consensus FFO estimates three times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - Sotherly Hotels shares have declined approximately 15% since the beginning of the year, contrasting with the S&P 500's decline of only 0.6% [3] - The future performance of the stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on recent numbers and future FFO expectations [3][4] Estimate Revisions and Market Position - The current consensus FFO estimate for the upcoming quarter is $0.36 on revenues of $52.1 million, and for the current fiscal year, it is $0.54 on revenues of $186.6 million [7] - The estimate revisions trend for Sotherly Hotels is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The REIT and Equity Trust - Other industry, to which Sotherly Hotels belongs, is currently positioned in the bottom 38% of over 250 Zacks industries, suggesting potential challenges ahead [8]