Extended Stay America (STAY) Tops Q3 EPS by 2c, Revenues Beat; Lifts FY18 EPS/Revenue Mid-Points Views

Extended Stay America (NASDAQ: STAY) reported Q3 EPS of $0.39, $0.02 better than the analyst estimate of $0.37. Revenue for the quarter came in at $351.1 million versus the consensus estimate of $344.64 million.

• Total revenues of $351.1 million
• Comparable system-wide Revenue Per Available Room (“RevPAR”) grew 1.9% to $55.57
• Adjusted EBITDA of $173.7 million
• Adjusted Funds From Operations (“Adjusted FFO”)1 of $0.61 per diluted Paired Share, an increase of 7.5%
• Adjusted Paired Share Income1 of $0.39 per diluted Paired Share, an increase of 11.5%

Extended Stay America’s President and Chief Executive Officer, Jonathan Halkyard, commented, “We made strong progress on our growth strategy during the third quarter. In the last few months, we completed the sale of two portfolios totaling 32 hotels, each of which is now a franchise hotel.”

Mr. Halkyard continued, “Each of these transactions come with agreements to develop additional Extended Stay America hotels. Those commitments, combined with our on-balance sheet development progress and new franchise applications, grew our pipeline to 52 hotels, an increase of more than 50% during the quarter.”

GUIDANCE:

Extended Stay America sees FY2018 EPS of $1.10-$1.14, versus the consensus of $1.12. Extended Stay America sees FY2018 revenue of $1.271-1.277 billion, versus the consensus of $1.27 billion.

For earnings history and earnings-related data on Extended Stay America (STAY) click here.

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