Home Inns & Hotels Management Inc. (NASDAQ:HMIN) delivered a profit and missed 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.
Home Inns & Hotels Management Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 78.24% to $0.47 in the quarter versus EPS of $2.16 in the year-earlier quarter.
Revenue: Rose 21.88% to $261 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Home Inns & Hotels Management Inc. reported adjusted EPS income of $0.47 per share. By that measure, the company missed the mean analyst estimate of $2.70. It missed the average revenue estimate of $1.52 billion.
Quoting Management: “Navigating through a persistently challenging business environment, the Company maintained steady revenue performance and delivered another quarter of margin expansion year over year,” said Mr. David Sun, the Company’s chief executive officer. “In spite of tough market conditions, Motel 168 hotels continued their trend of performance improvements as a result of solid execution of our integration plans. Our cost control and productivity measures have proven effective in generating sustainable benefits to protect margin. Meanwhile, the gradual increase of revenues from franchise operations will provide a steady support for profitability enhancements going forward.”
Key Stats (on next page)…
Revenue increased 23.42% from $211.48 million in the previous quarter. EPS increased 113.64% from $0.22 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $3.61 to a profit $3.59. For the current year, the average estimate has moved up from a profit of $8.00 to a profit of $8.35 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)