Ashford Hospitality Trust Earnings: Here’s Why Shares are Up Now
Ashford Hospitality Trust Inc. (NYSE:AHT) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.08%.
Ashford Hospitality Trust Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 25% to $0.35 in the quarter versus EPS of $0.28 in the year-earlier quarter.
Revenue: Rose 7.86% to $231.94 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Ashford Hospitality Trust Inc. reported adjusted EPS income of $0.35 per share. By that measure, the company missed the mean analyst estimate of $0.35. It missed the average revenue estimate of $233.7 million.
Quoting Management: “We are very pleased with our first quarter results which continue to demonstrate substantial improvement in the operating performance of our Highland Hospitality portfolio due to the management changes and cost controls we have implemented as well as the capital expenditures we continue to make at the hotels,” commented Monty J. Bennett, Ashford’s Chairman and Chief Executive Officer. “Additionally, our capital market strategies have essentially addressed all of our near-term debt maturities, with our next significant debt maturity not until November 2014. Our efforts have been extremely successful and have put Ashford in a significantly enhanced position both from a cash and liquidity perspective. We believe we have more than sufficient resources to insulate us from any unexpected market fluctuations and the financial flexibility to take advantage of accretive investments opportunities that may arise.”
Key Stats (on next page)…
Revenue increased 10.88% from $209.19 million in the previous quarter. EPS decreased 10.26% from $0.39 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.58 and has not changed. For the current year, the average estimate has moved up from a profit of $1.68 to a profit of $1.7 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)