Have you been eager to see how Host Hotels & Resorts Inc. (HST) performed in Q4 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:
A FFO Beat
Host Hotels came out with adjusted funds from operations (FFO) of 40 cents per share, beating the Zacks Consensus Estimate of 38 cents.
Results reflect improvement in comparable hotel RevPAR (Revenue Per Available Room) that was backed by rate growth.
How Was the Earnings Surprise Trend?
Host Hotels has a decent earnings surprise history. Before posting earnings beat in Q4, the company delivered a positive surprise in the prior quarter. Overall, the company surpassed the Zacks Consensus Estimate by an average of 5.68% in the trailing four quarters.
Revenue Came In Lower Than Expected
However, Host Hotels posted revenues of $1,320 million, which marginally missed the Zacks Consensus Estimate of $1,350 million. It also compared unfavorably with the year-ago number of $1,331 million.
Key Developments to Note:
For 2015, Host Hotels expects its adjusted FFO per share to range between $1.52 and $1.55, backed by comparable hotel RevPAR (constant U.S. dollar basis) growth of 4.5% – 5.5%.
What Zacks Rank Says
Host Hotels currently has a Zacks Rank #2 (buy). 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 favorable, it all depends on what sense the just-released report makes to the analysts.
Note: FFO, a widely accepted and reported measure of the performance of REITs, is derived by adding depreciation, 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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