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Host Hotels (HST) Q2 FFO Meets Estimate, Revenues Miss

Zacks Equity Research
Updated

Have you been eager to see how Host Hotels & Resorts Inc. HST performed in Q2 in comparison with the market expectations? Let’s quickly scan through the key facts from this Bethesda, Maryland – based hotel real estate investment trust’s (REIT) earnings release this morning:

FFO Meets Estimate

Host Hotels came out with adjusted funds from operations ("FFO") of 49 cents per share, in line with the Zacks Consensus Estimate.

Results reflect lower-than-expected revenue performance though productivity and efficiency improved across the portfolio.

How Was the Earnings Surprise Trend?

Host Hotels has a decent earnings surprise history. Before posting an in line result in Q2, the company delivered a positive surprise in the prior quarter. Overall, the company surpassed the Zacks Consensus Estimate by an average of 6.95% in the trailing four quarters.

HOST HOTEL&RSRT Price and EPS Surprise

HOST HOTEL&RSRT Price and EPS Surprise | HOST HOTEL&RSRT Quote

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Revenues Came In Lower Than Expected    

Host Hotels posted total revenues of $1.46 billion, which marginally missed the Zacks Consensus Estimate of $1.47 billion but exceeded the year-ago number of $1.44 billion.

Key Developments to Note:

For 2016, Host Hotels expects its adjusted FFO per share in a range of $1.63–$1.67, backed by comparable hotel RevPAR (constant U.S. dollar basis) growth of 2–3%. Notably, the company has lowered its projected range for RevPAR growth for comparable properties by 100 basis points on account of uncertain economic outlook.

What Zacks Rank Says

Host Hotels currently has a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look unfavorable, it all depends on what sense the just-released report makes to the analysts.

Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

Check back later for our full write up on this HST earnings report later!

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