Workforce housing company Target Hospitality (NASDAQ: TH) will be reporting earnings tomorrow before market open. Here’s what to look for.
Target Hospitality beat analysts’ revenue expectations by 4.5% last quarter, reporting revenues of $83.69 million, down 33.7% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates. It reported 11,911 utilized beds, down 14.8% year on year.
Is Target Hospitality a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Target Hospitality’s revenue to decline 38.7% year on year to $65.35 million, a further deceleration from the 27.8% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.02 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Target Hospitality has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 5.7% on average.
Looking at Target Hospitality’s peers in the travel and vacation providers segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Lindblad Expeditions delivered year-on-year revenue growth of 17%, beating analysts’ expectations by 18.8%, and Hyatt Hotels reported flat revenue, topping estimates by 2%. Lindblad Expeditions traded up 5.5% following the results while Hyatt Hotels was also up 9.2%.
Read our full analysis of Lindblad Expeditions’s results here and Hyatt Hotels’s results here.
There has been positive sentiment among investors in the travel and vacation providers segment, with share prices up 17.6% on average over the last month. Target Hospitality is up 11% during the same time and is heading into earnings with an average analyst price target of $8.75 (compared to the current share price of $7.05).
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