Summit Hotel Properties (INN) Q3 FFO and Revenue Top Estimates – November 3, 2021

Summit Hotel Properties (HOSTEL Free Report) came out with quarterly operating funds (FFOs) of $ 0.19 per share, beating Zacks’ consensus estimate of $ 0.14 per share. This compares to a loss of $ 0.10 per share a year ago. These figures are corrected for non-recurring items.

This quarterly report represents a surprise FFO of 35.71%. A quarter ago, this high-end hospitality real estate investment fund was expected to post an FFO of $ 0.03 per share when it actually produced an FFO of 0.08 $, delivering a surprise of 166.67%.

In the past four quarters, the company has beaten consensus FFO estimates three times.

Summit Hotel Properties, which is owned by Zacks REIT and Equity Trust – Other industry, reported revenue of $ 110.69 million for the quarter ended September 2021, beating Zacks’ consensus estimate by 9.42%. This compares to a year ago revenue of $ 52.41 million. The company has beaten consensus revenue estimates three times in the past four quarters.

The sustainability of the immediate stock price movement based on recently released numbers and FFO’s future expectations will depend primarily on management comments on the profit call.

Shares of Summit Hotel Properties are up about 13.4% year-to-date against the 23.3% gain in the S&P 500.

What’s next for Summit hotel properties?

While Summit Hotel Properties has underperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable metric that can help investors address this issue is the company’s FFO outlook. This not only includes the current consensus FFO expectations for the upcoming quarter (s), but also how those expectations have changed in recent times.

Empirical research shows a strong correlation between short-term stock movements and trends in estimate revisions. Investors can track these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.

Prior to this earnings release, the trend in revised estimates for Summit Hotel Properties was favorable. While the magnitude and direction of estimate revisions may change as a result of the company’s just released earnings report, the current status translates to a Zacks Rank # 2 (Buy) for the stock. Thus, stocks are expected to outperform the market in the near future. You can see the full list of Zacks # 1 Rank (Strong Buy) stocks today here.

It will be interesting to see how the estimates for the next quarters and the current year evolve in the days to come. The current consensus FFO estimate is $ 0.12 out of $ 100.44 million in revenue for the coming quarter and $ 0.27 out of $ 344.65 million in revenue for the current year.

Investors should be aware that the outlook for the sector can also have a significant impact on the performance of the stock. In terms of industry rankings Zacks, REIT and Equity Trust – Other are currently in the top 41% of Zacks 250+ industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.

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About Angelita A. Blanchard

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