Choice Hotels Q1 Profit Misses Market; Cuts FY25 Earnings Outlook - Update

(RTTNews) - Choice Hotels International, Inc (CHH), while reporting higher first-quarter profit, but below market estimates, on Thursday trimmed its earnings forecast for fiscal 2025.

The lodging franchisor said it is adjusting its outlook to reflect a more moderate domestic RevPAR growth expectation amidst a changing macro backdrop.

In the pre-market activity on the NYSE, Choice Hotels shares were losing around 0.5 percent to trade at $125.10.

For fiscal 2025, the company now expects net income of $275 million to $290 million, lower than previous estimate of $288 million to $300 million. Earnings per share would be $5.86 to $6.18, compared to previously expected $6.04 to $6.29.

Adjusted net income is now projected to be $324 million to $339 million, compared to previous forecast of $333 million to $345 million. Adjusted earnings per share would be $6.90 to $7.22, down from $6.98 to $7.24 expected earlier.

The Wall Street analysts on average expect the company to report earnings of $6.95 per share. Analysts' estimates typically exclude special items.

Domestic RevPAR is now expected to be down 1 percent to up 1 percent, while previous estimate was a growth of 1 percent to 2 percent.

In the first quarter, Choice Hotels' bottom line came in at $44.53 million or $0.94 per share, compared with $31.01 million, or $0.62 per share, last year.

Adjusted earnings were $63.64 million or $1.34 per share for the period. Analysts had expected the company to earn $1.37 per share.

The company's revenue for the period rose 0.3 percent to $332.86 million from $331.95 million last year.

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