Headlines
- Chatham Lodging exceeded Q2 expectations with funds from operations (FFO) of $0.39 per share, outperforming the forecast of $0.36 per share.
- The company reported quarterly revenues of $86.48 million, surpassing the anticipated $85.5 million, marking a notable year-over-year increase.
- Despite these positive results, Chatham Lodging shares have underperformed in the year-to-date, trailing behind the broader market gains.
Chatham Lodging (NYSE:CLDT) reported stronger-than-expected financial results for the second quarter, with FFO reaching $0.39 per share, surpassing the forecast of $0.36 per share. This performance marks an 8.33% surprise compared to expectations. For the same period last year, the company reported an FFO of $0.43 per share, with adjustments made for non-recurring items.
In addition to the FFO beat, Chatham Lodging also exceeded revenue expectations, posting $86.48 million for the quarter ended June 2024. This figure was 1.17% above the projected revenue of $85.5 million and a year-over-year increase from $84.48 million. Over the past year, the company has consistently outperformed revenue estimates, achieving this feat three times in four quarters.
The stock's short-term price movement will largely depend on management's guidance provided during the earnings call. Current trends indicate a notable decline in the stock price of approximately 19.1% since the beginning of the year, contrasting with the S&P 500's 14.2% gain.
Looking ahead, the outlook for Chatham Lodging’s stock remains uncertain. While the recent earnings report provided positive results, the broader industry and company-specific factors will influence future performance. The current consensus FFO estimate for the upcoming quarter is $0.37, with projected revenues of $88.87 million. For the fiscal year, the estimates are $1.08 in FFO and $316.59 million in revenue.
The performance of Chatham Lodging also reflects broader industry trends. The REIT and Equity Trust - Other sector is ranked in the top 39% of Zacks industries, indicating a relatively strong position within the market.
Meanwhile, Lamar Advertising (NASDAQ:LAMR), a company within the same industry, is expected to report its results on August 8. The anticipated earnings for Lamar Advertising are $2.06 per share, reflecting an 8.4% year-over-year increase. The projected revenue for the quarter stands at $564.15 million, marking a 4.3% rise from the previous year.
As Chatham Lodging navigates its next steps, industry conditions and future earnings projections will be key to understanding its trajectory.