FelCor Lodging Trust Earnings: Loss Narrows

FelCor Lodging Trust (NYSE:FCH) reported its results for the third quarter. Felcor Lodging Trust is a real estate investment trust that is engaged in hospitality business.

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FelCor Lodging Trust Earnings Cheat Sheet

Results: Loss narrowed to $19 million (loss of 31 cents per diluted share) from $22.8 million (loss of 26 cents per share) in the same quarter a year earlier.

Revenue: Rose 5.9% to $236.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: FelCor Lodging Trust reported adjusted net income of 8 cents per share. By that measure, the company fell in line with the mean estimate of 8 cents per share. It fell short of the average revenue estimate of $257.7 million.

Quoting Management: Commenting on third quarter results, Richard A. Smith, President and Chief Executive Officer of FelCor, said, “I am pleased with our results, as our RevPAR growth exceeded the industry average. Our efforts to remix customer segments and increase ADR have been successful, and ADR growth exceeded our expectations. While food and beverage profit was significantly above prior year, it was below our expectations and impacted our margins. Nonetheless, our operating results met the low-end of our expectations. Overall, lodging fundamentals remain strong. Transient demand continues to be solid, and supply growth is at historically low levels. These tailwinds will bolster U.S. RevPAR for the next few years.”

Key Stats:

For the last two quarters, the company has met analyst estimates. It reported net income of 18 cents in the second quarter and a loss of 2 cents in the first quarter.

Last quarter, the company reported a net loss that marked a turn from the previous quarter’s profit. The company booked a profit of $28.5 million, or 31 cents per share, in the first quarter.

Looking Forward: The average estimate for the fourth quarter remains unchanged at one cent a share. For the fiscal year, the average estimate has been unchanged at 26 cents a share.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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