Ryman Hospitality Properties, Inc (NYSE:RHP) 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.
Ryman Hospitality Properties, Inc Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 975% to $1.29 in the quarter versus EPS of $0.12 in the year-earlier quarter.
Revenue: Decreased 7.04% to $222.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: reported adjusted EPS income of $1.29 per share. By that measure, the company beat the mean analyst estimate of $0.32. It missed the average revenue estimate of $245.19 million.
Quoting Management: The end of the first quarter marked the completion of the Gaylord Hotels conversion to Marriott’s systems, allowing the hotels to start to benefit from the many anticipated synergies. Colin V. Reed, chairman, chief executive officer and president of Ryman Hospitality Properties, stated, “Despite an unusual confluence of events during the quarter that adversely impacted the group sector, including government related attrition and cancellations, the timing of the Easter holiday, and negative group mix shift year-over-year, we are seeing encouraging signs that the benefits of the Marriott affiliation are beginning to emerge. Our hotels produced record first quarter forward group bookings, record first quarter in-the-year, for-the-year group bookings, and record first quarter transient room night production. All three were material increases year-over-year. As the Marriott systems are fully implemented and anticipated costs savings begin to be realized, we continue to believe that our previously discussed cost synergies projection of $13 million to $16 million at the property level for 2013 will be accomplished. Furthermore, our projected corporate cost savings are being realized as expected, which can be seen in our first quarter numbers.”
Key Stats (on next page)…
Revenue decreased 16.6% from $266.32 million in the previous quarter. EPS increased to $1.29 in the quarter versus EPS of $-0.32 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.5 to a profit $0.58. For the current year, the average estimate has moved up from a profit of $1.35 to a profit of $1.62 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)