DiamondRock Hospitality (DRH) Tops Q2 FFO Estimates

Core Viewpoint - DiamondRock Hospitality (DRH) reported quarterly funds from operations (FFO) of $0.35 per share, exceeding the Zacks Consensus Estimate of $0.33 per share, and showing a slight increase from $0.34 per share a year ago [1] Group 1: Financial Performance - The quarterly FFO surprise was +6.06%, and the company had a previous quarter surprise of +11.76% with an actual FFO of $0.19 compared to an expected $0.17 [2] - Revenues for the quarter ended June 2025 were $305.72 million, which missed the Zacks Consensus Estimate by 0.94%, and decreased from $309.28 million year-over-year [3] - Over the last four quarters, the company has surpassed consensus FFO estimates three times but has only topped revenue estimates once [3] Group 2: Stock Performance and Outlook - DiamondRock Hospitality shares have declined approximately 16.1% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [4] - The company's FFO outlook is crucial for investors, with current consensus FFO estimates at $0.26 for the coming quarter and $1.00 for the current fiscal year [5][8] - The Zacks Rank for DiamondRock Hospitality is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [7] Group 3: Industry Context - The REIT and Equity Trust - Other industry is currently in the top 40% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [9]