Choice Hotels International (NYS: CHH) reported earnings on Feb. 21. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Choice Hotels International beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved.
Gross margins contracted, operating margins increased, and net margins dropped.
Choice Hotels International booked revenue of $165.9 million. The 10 analysts polled by S&P Capital IQ predicted revenue of $163.8 million on the same basis. GAAP reported sales were 7.0% higher than the prior-year quarter's $155.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.46. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.44 per share on the same basis. GAAP EPS of $0.42 for Q4 were 5.0% higher than the prior-year quarter's $0.40 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 44.7%, 4,750 basis points worse than the prior-year quarter. Operating margin was 25.5%, 560 basis points better than the prior-year quarter. Net margin was 14.9%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $122.2 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $664.2 million. The average EPS estimate is $2.05.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 63 members out of 81 rating the stock outperform, and 18 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Choice Hotels International a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Choice Hotels International is hold, with an average price target of $35.
Over the decades, small-cap stocks like Choice Hotels International have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
Add Choice Hotels International to My Watchlist.
At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.