Here's What to Know Ahead of Target Hospitality's Q1 Earnings

Core Viewpoint - Target Hospitality Corp. is expected to report a loss in Q1 2025, with significant declines in both earnings and revenues compared to the previous year, reflecting ongoing challenges in its business segments [1][2][3]. Financial Performance - The adjusted earnings for Q1 2025 are estimated to be a loss of $0.02 per share, a deterioration of 110% from the EPS of $0.20 reported in the same quarter last year [2]. - Revenue estimates for Q1 2025 are pegged at $65.4 million, indicating a decline of 38.7% from $106.7 million in the prior-year quarter [3]. Segment Performance - The Government segment's revenues are expected to be $23.7 million, down from $67.6 million in the prior-year quarter [4]. - Revenues from the Hospitality & Facilities Services – South segment are estimated at $35.8 million, a slight decrease from $36.9 million reported in the previous year [4]. Cost and Operational Challenges - The company's bottom line is anticipated to be negatively impacted by increased selling, general, and administrative expenses, alongside a declining top line [5]. - The adjusted gross profit for the Government and Hospitality & Facilities Services – South segments is projected to be $16.2 million and $11.5 million, respectively, both showing year-over-year declines [6]. Earnings Prediction Model - The current model does not predict an earnings beat for Target Hospitality, as the Earnings ESP stands at 0.00% and the company holds a Zacks Rank of 2 (Buy) [7][8].