RLJ Lodging (RLJ) Tops Q2 FFO and Revenue Estimates


RLJ Lodging (RLJ) got here out with quarterly funds from operations (FFO) of $0.49 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to FFO of $0.07 per share a 12 months in the past. These figures are adjusted for non-recurring objects.

This quarterly report represents an FFO shock of 11.36%. 1 / 4 in the past, it was anticipated that this resort actual property funding belief would put up FFO of $0.16 per share when it truly produced FFO of $0.14, delivering a shock of -12.50%.

Over the final 4 quarters, the corporate has surpassed consensus FFO estimates two instances.

RLJ Lodging, which belongs to the Zacks REIT and Equity Trust – Other business, posted revenues of $330.5 million for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 2.32%. This compares to year-ago revenues of $194.25 million. The firm has topped consensus income estimates thrice over the past 4 quarters.

The sustainability of the stock’s rapid value motion based mostly on the recently-released numbers and future FFO expectations will principally depend upon administration’s commentary on the earnings name.

RLJ Lodging shares have misplaced about 11.1% for the reason that starting of the 12 months versus the S&P 500’s decline of -12.8%.

What’s Next for RLJ Lodging?

While RLJ Lodging has outperformed the market thus far this 12 months, the query that involves traders’ minds is: what’s subsequent for the stock?

There aren’t any simple solutions to this key query, however one dependable measure that may assist traders tackle that is the corporate’s FFO outlook. Not solely does this embrace present consensus FFO expectations for the approaching quarter(s), but additionally how these expectations have modified recently.

Empirical analysis reveals a powerful correlation between near-term stock actions and developments in estimate revisions. Investors can monitor such revisions by themselves or depend on a tried-and-tested ranking device just like the Zacks Rank, which has a formidable monitor file of harnessing the facility of estimate revisions.

Ahead of this earnings release, the estimate revisions development for RLJ Lodging: favorable. While the magnitude and course 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 can be attention-grabbing to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus FFO estimate is $0.41 on $324.71 million in revenues for the approaching quarter and $1.38 on $1.21 billion in revenues for the present fiscal 12 months.

Investors needs to be aware of the truth that the outlook for the business can have a cloth influence on the efficiency of the stock as effectively. In phrases of the Zacks Industry Rank, REIT and Equity Trust – Other is at the moment within the high 34% 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.

Root, Inc. (ROOT), one other stock within the broader Zacks Finance sector, has but to report outcomes for the quarter ended June 2022. The outcomes are anticipated to be launched on August 8.

This firm is anticipated to put up quarterly lack of $0.49 per share in its upcoming report, which represents a year-over-year change of +31.9%. The consensus EPS estimate for the quarter has remained unchanged over the past 30 days.

Root, Inc.’s revenues are anticipated to be $84.97 million, down 5.4% from the year-ago quarter.

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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.

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