FelCor Lodging Trust Earnings: Here’s Why the Stock is Up Now

FelCor Lodging Trust Inc. (NYSE:FCH) delivered a profit and beat Wall Street’s expectations, BUT 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 1.32%.

FelCor Lodging Trust Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 16.67% to $0.21 in the quarter versus EPS of $0.18 in the year-earlier quarter.

Revenue: Decreased 3.55% to $249.03 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: FelCor Lodging Trust Inc. reported adjusted EPS income of $0.21 per share. By that measure, the company beat the mean analyst estimate of $0.20. It missed the average revenue estimate of $262.42 million.

Quoting Management: Richard A. Smith, President and Chief Executive Officer of FelCor, said, “Our high quality, diverse portfolio produced strong results during the second quarter, building on our momentum for the year. As the U.S. economy continues to improve, and demand for hotel rooms outpaces new supply, our industry should experience solid growth. Our portfolio is well-positioned to take advantage of this trend and outperformed the industry in the second quarter, as RevPAR at our comparable hotels increased 5.7%. Furthermore, FelCor is the only hotel REIT which has outperformed the upper-upscale segment over the past five years.”

Key Stats (on next page)…

Revenue increased 12.8% from $220.78 million in the previous quarter. EPS increased to $0.21 in the quarter versus EPS of $-0.01 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 $0.14 and has not changed. For the current year, the average estimate has moved up from a profit of $0.39 to a profit of $0.40 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)