Choice Hotels (NYSE: CHH) reported Q4 EPS of $0.92, $0.07 better than the analyst estimate of $0.85. Revenue for the quarter came in at $268.08 million versus the consensus estimate of $256.33 million.

• Net income was $42.2 million for the fourth quarter 2019 and $222.9 million for the full year, representing diluted earnings per share (EPS) of $0.75 and $3.98, respectively.
• Full year adjusted net income, excluding certain items described in Exhibit 6, increased 9% over the prior full year period to $242.0 million.
• Full year adjusted EPS increased 11% over the prior full year period to $4.32, while fourth quarter adjusted EPS increased 5% over the prior year fourth quarter to $0.92.
• The company exceeded the top end of its full year 2019 adjusted EPS guidance by $0.05 per share and the top end of its fourth quarter adjusted EPS guidance by $0.06 per share.
• Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the full year were $364.9 million, a 7% increase from the same period of 2018, achieving the top end of the company's full year 2019 adjusted EBITDA guidance. Adjusted EBITDA for the fourth quarter were $81 million, a 6% increase from the fourth quarter 2018.
• The company's domestic upscale, midscale, and extended stay segments reported a 3.1% aggregate increase in units and a 4.3% growth in rooms since December 31, 2018.

"In 2019, Choice Hotels drove impressive results in the revenue-intense segments where we operate – upscale, extended stay, and midscale – with proven brands supported by a strong value proposition for our franchisees. Growth in these higher value segments, the continued expansion of our platform business through key partnerships, new technology, and other key franchisee resources have enabled us to drive our top-line revenue and deliver tangible, value-added solutions to our hotel owners and customers," said Patrick Pacious, president and chief executive officer, Choice Hotels. "Our results are a testament to the success of our long-term growth strategy to invest in brands built for the customer of tomorrow."

GUIDANCE:

Choice Hotels sees Q1 2020 EPS of $0.80-$0.84, versus the consensus of $0.81.

Choice Hotels sees FY2020 EPS of $4.22-$4.33, versus the consensus of $4.40.

The adjusted numbers in the company's outlook exclude the net surplus or deficit generated from the company's marketing and reservation system activities, as well as other items. See Exhibit 7 for the calculation of adjusted forecasted results and the reconciliation to the comparable GAAP measures.

• Net income for full year 2020 is expected to range between $201 million and $208 million, or $3.57 to $3.69 per diluted share.
• Adjusted diluted EPS for full year 2020 is expected to range between $4.22 to $4.33. The company's first quarter 2020 adjusted diluted EPS is expected to range between $0.80 to $0.84. The company expects full year 2020 adjusted net income to range between $237 million and $244 million.
• Adjusted EBITDA for full year 2020 is expected to range between $378 million and $385 million.
• The company's outlook for adjusted EBITDA and adjusted EPS is based on the current number of shares of common stock outstanding and, therefore, does not reflect any subsequent changes that may occur due to new equity grants or further repurchases of common stock under the company\'s stock repurchase program.
• Net domestic unit growth for 2020 is expected to range between 1.5% and 2.5%.
• Domestic RevPAR is expected to be between flat and a decline of 2% for the first quarter and full year 2020 versus the same periods of the prior year.
• The company's domestic effective royalty rate is expected to increase between 4 and 8 basis points for full year 2020, as compared to full year 2019.
• The recurring tax rate before discrete items is expected to be 22.5% for both the first quarter and full year 2020.

For earnings history and earnings-related data on Choice Hotels (CHH) click here.