Extended Stay (STAY) Q2 Earnings Miss, Revenues Top Estimates
Zacks Investment Research | Aug 07, 2019 08:58AM ET
Extended Stay America, Inc. (NASDAQ:STAY) reported mixed second-quarter 2019 results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed the same. However, the company’s top and bottom lines declined on a year-over-year basis.
Adjusted earnings were 32 cents per share, missing the Zacks Consensus Estimate by one cent. The bottom line also declined 8.6% year over year due to lower hotel operating margin, partially offset by reduced depreciation, interest and corporate overhead expenses.
Detailed Revenue Discussion
Total revenues of $323.7 million in the second quarter surpassed the Zacks Consensus Estimate of $319 million. However, the top line declined 3.8% on a year-over-year basis due to asset dispositions. When adjusted for asset disposition, the company’s revenues rose 1% year over year.
Also, comparable system-wide RevPAR gained 0.1% on a year-over-year basis. The improvement can be attributed to an increase of 220 basis points in occupancy, overshadowed by a 2.7% fall in average daily rate (ADR). However, total company-owned RevPAR rose 2.5%, whereas comparable company-owned RevPAR declined 0.1% to $55.66 in the second quarter.
Extended Stay America, Inc. Price, Consensus and EPS Surprise
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