Nomura Securities Q1 Lodging Preview: Expecting a Modest EPS Outperformance

Nomura Securities Q1 Lodging Preview: Expecting a Modest EPS Outperformance

Analyst, Harry Curtis, said, "Our 1Q EBITDA and EPS estimates are based on ~ 6% RevPAR growth in 1Q. Based on our survey, it appears RevPAR will be closer to 7%, driving expected EPS outperformance of $0.01 to $0.04. YTD, our lodging stocks are up 15% vs 11% for the S&P 500 hotels, resorts and cruise line index. Multiple expansion, not earnings, has been the primary driver. From here, we expect continued upside, but it should be driven by stronger fundamentals rather than multiple expansion. We note that in the last 10 years, the lodging stocks have peaked in the spring and bottomed in the fall. We are positive on the industry’s pricing and margin trends, but recommend patience in adding to or initiating new positions."

Choice Hotels (NYSE: CHH) (Neutral, $41): 1QE EPS $0.31 vs. Street $0.31

Gaylord Entertainment (NYSE: GET) (Neutral, $31): 1QE cash flow $48.8M

Hyatt (NYSE: H) (Neutral $43): 1QE EPS $0.09; possible upside $0.01; vs. Street $0.09

Starwood (NYSE: HOT) (Neutral $57): 1QE EPS $0.34; possible upside $0.04

Host Hotels (NYSE: HST) (Neutral $16): 1QE EPS $0.14; possible upside $0.02; vs. Street $0.14

Marriott (NYSE: MAR) (Buy, $43): 1QE EPS $0.30; possible upside $0.01; vs. Street $0.29

Wynn (NYSE: WYN) (Neutral $44): 1QE EPS $0.55 vs. Street $0.55

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Tesla touts acceleration of new models, but Q1 results fall short of estimates
• Quest Diagnostics (DGX) PT Raised to $145 at Evercore ISI
• Matador Resources (MTDR) Tops Q1 EPS by 16c; provides guidance