Home Inns & Hotels Management Beats on the Top Line

Seth Jayson, The Motley Fool
Updated

Home Inns & Hotels Management (NAS: HMIN) reported earnings on Thursday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Home Inns & Hotels Management missed slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share dropped to a loss.

Margins dropped across the board.

Revenue details
Home Inns & Hotels Management logged revenue of $195.2 million. The six analysts polled by S&P Capital IQ predicted a top line of $198.6 million on the same basis. GAAP reported sales were 72% higher than the prior-year quarter's $121 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.12. The five earnings estimates compiled by S&P Capital IQ predicted $0.27 per share on the same basis. GAAP EPS were -$0.02 for Q4 against $0.12 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 30.3%, 710 basis points worse than the prior-year quarter. Operating margin was 4.5%, 810 basis points worse than the prior-year quarter. Net margin was 2.5%, 160 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $174.7 million. On the bottom line, the average EPS estimate is -$0.03.

Next year's average estimate for revenue is $855.6 million. The average EPS estimate is $0.77.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 479 members rating the stock outperform, and 65 members rating it underperform. Among 145 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 119 give Home Inns & Hotels Management a green thumbs-up, and 26 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Home Inns & Hotels Management is outperform, with an average price target of $43.74.

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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.

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