Host Hotels & Resorts, Inc. HST is scheduled to release fourth-quarter and full-year 2024 earnings results on Feb. 19, after market close. While the company’s quarterly results are likely to display a year-over-year rise in revenues, adjusted funds from operations (AFFO) per share might display a decline.
See the Zacks Earnings Calendar to stay ahead of market-making news.
In the previous quarter, this Bethesda, MD-based lodging real estate investment trust (REIT) reported an AFFO per share of 36 cents, in line with the Zacks Consensus Estimate. Results reflected a year-over-year rise in revenues.
Over the trailing four quarters, Host Hotels’ AFFO per share surpassed estimates on two occasions and met in the remaining periods, the average surprise being 3.2%. The graph below depicts this surprise history:
Host Hotels & Resorts, Inc. Price and EPS Surprise
Host Hotels & Resorts, Inc. price-eps-surprise | Host Hotels & Resorts, Inc. Quote
Factors to Consider Ahead of HST’s Upcoming Results
Host Hotels enjoys a portfolio of luxury and upper-scale hotels across the top U.S. Markets and the Sunbelt region. These properties are strategically located in central business districts of major cities near airports and resort/conference destinations, which drives demand.
The continuous strong group business demand has aided hotel revenue per available (RevPAR) growth over the past few quarters. This trend is likely to have continued in the fourth quarter.
Host Hotels’ strategic capital allocations are likely to have improved portfolio quality and strengthened position in the United States, where it has a greater scale and competitive advantage. This is likely to have given it an edge and drove margin expansion.
However, high interest expenses are likely to have been a spoilsport for HST during the to-be-reported quarter.
HST’s Q4 Estimations
The Zacks Consensus Estimate for HST’s quarterly revenues is presently pegged at $1.38 billion, implying growth of 4.2% from the prior-year period’s reported figure.
The Zacks Consensus Estimate for quarterly RevPAR is pinned at $207.6, indicating an increase from $202.9 reported in the year-ago quarter.
However, the consensus mark for the average occupancy rate in the fourth quarter is pegged at 67.05%, implying a slight decline from the prior-year quarter’s reported figure of 67.20%.
We expect fourth-quarter 2024 interest expenses to have risen 22.5% year over year.
The company’s activities during the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for AFFO per share has revised a cent downward to 40 cents in the past two months. The figure implies a 9.1% fall from the year-ago reported number.
2024 Estimations for HST
For 2024, Host Hotels expects an AFFO per share of $1.92. The company has kept its comparable hotel RevPAR projection for the year at $215.
For the full year, the Zacks Consensus Estimate for AFFO per share remains the same as the company’s guidance. The figure indicates no change year over year on 6.1% growth in revenues to $5.63 billion.
What Our Quantitative Model Predicts
Our proven model predicts a likely surprise in terms of AFFO per share for Host Hotels this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an AFFO beat, which is the case here.
Host Hotels currently has an Earnings ESP of +1.53% and carries a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a Look
Here are two other stocks from the broader REIT sector — Park Hotels & Resorts PK and Ryman Hospitality Properties RHP — that you may want to consider, as our model shows that these, too, have the right combination of elements to report a surprise this quarter.
Park Hotels is slated to report quarterly numbers on Feb. 19. PK has an Earnings ESP of +10.69% and carries a Zacks Rank of 3 presently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ryman Hospitality, scheduled to report quarterly numbers on Feb. 20, has an Earnings ESP of +4.91% and a Zacks Rank of 3.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpHost Hotels & Resorts, Inc. (HST) : Free Stock Analysis Report
Ryman Hospitality Properties, Inc. (RHP) : Free Stock Analysis Report
Park Hotels & Resorts Inc. (PK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
