Home Inns & Hotels Management Inc. (NASDAQ:HMIN) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.13%.
Home Inns & Hotels Management Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 16.67% to $0.14 in the quarter versus EPS of $0.12 in the year-earlier quarter.
Revenue: Decreased 0% to $235.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Home Inns & Hotels Management Inc. reported adjusted EPS income of $0.14 per share. By that measure, the company missed the mean analyst estimate of $0.16. It beat the average revenue estimate of $221.97 million.
Quoting Management: “Given sustained market challenges and increasing competition, we are reasonably pleased with our overall performance,” said Mr. David Sun, the Company’s chief executive officer. “We met our annual revenue expectations and exceeded our target for new hotel openings. Performance of mature hotels remained solid relative to market softness, the integration of Motel 168 continues to be on track, and we have finalized the Yitel brand design and financial blueprint.”
“Our growth focus on low-capital-high-margin franchise-and-managed hotels is well supported by our strong brand, our well-run franchise programs and the increasing demand from our quality franchisee partners. We plan to conclude Motel 168 integration this year, and this second economy brand will then start to contribute positively to our bottom line. The impressive development trends of Yitel hotels in operations have proven concept and execution model, and we expect to scale up the Yitel portfolio accordingly,” Mr. Sun continued. “Meaningful improvements may still be months ahead, and the Company is focused on sustainable profitable growth for the long run. We have built solid internal readiness including strong franchised-and-managed hotels growth momentum and continued cost control initiatives to take advantage of market recoveries when time comes and to capture long-term growth prospects of the Chinese economy.”
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