Ashford (AINC) got here out with quarterly earnings of $2.21 per share, beating the Zacks Consensus Estimate of $1.22 per share. This compares to earnings of $1.17 per share a 12 months in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of 81.15%. 1 / 4 in the past, it was anticipated that this asset administration firm serving the hospitality trade would submit earnings of $0.79 per share when it truly produced earnings of $1.50, delivering a shock of 89.87%.
Over the final 4 quarters, the corporate has surpassed consensus EPS estimates 3 times.
The sustainability of the stock’s quick value motion based mostly on the recently-released numbers and future earnings expectations will largely rely upon administration’s commentary on the earnings name.
Ashford shares have misplaced about 16.1% for the reason that starting of the 12 months versus the S&P 500’s decline of -14.2%.
What’s Next for Ashford?
While Ashford has underperformed the market up to now this 12 months, the query that involves buyers’ minds is: what’s subsequent for the stock?
There are not any simple solutions to this key query, however one dependable measure that may assist buyers deal with that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified currently.
Empirical analysis reveals a robust correlation between near-term stock actions and traits in earnings estimate revisions. Investors can monitor such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a formidable monitor report of harnessing the facility of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions pattern for Ashford: favorable. While the magnitude and route of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #2 (Buy) for the stock. So, the shares are anticipated to outperform the market within the close to future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It shall be fascinating to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is $1.28 on $134.03 million in revenues for the approaching quarter and $5.09 on $558.73 million in revenues for the present fiscal 12 months.
Investors needs to be conscious of the truth that the outlook for the trade can have a fabric influence on the efficiency of the stock as nicely. In phrases of the Zacks Industry Rank, Financial – Investment Management is presently within the backside 11% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
Another stock from the identical trade, Victory Capital Holdings (VCTR), has but to report outcomes for the quarter ended June 2022. The outcomes are anticipated to be launched on August 4.
This funding administration agency is anticipated to submit quarterly earnings of $1.11 per share in its upcoming report, which represents a year-over-year change of -5.9%. The consensus EPS estimate for the quarter has been revised 5.4% decrease during the last 30 days to the present stage.
Victory Capital Holdings’ revenues are anticipated to be $216.94 million, down 2.2% from the year-ago quarter.
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Ashford Inc. (AINC): Free Stock Analysis Report
Victory Capital Holdings, Inc. (VCTR): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.