Host Hotels & Resorts Prepares for Q4 Earnings Announcement
Based in Bethesda, Maryland, Host Hotels & Resorts, Inc. (HST) stands as a leading lodging real estate investment trust (REIT) and one of the largest owners of luxury and upper-upscale hotels. With a market capitalization of $11.9 billion, the company collaborates with top brands like Marriott, Ritz-Carlton, Westin, and Sheraton, in addition to various independent brands, to manage properties across key markets. The company is set to report its fiscal Q4 earnings after market close on Wednesday, February 19.
Anticipated Earnings and Financial Performance
As the earnings report approaches, analysts project the REIT to achieve a funds from operations (FFO) of $0.40 per share, reflecting a 9.1% decrease from $0.44 per share in the same quarter last year. Historically, Host Hotels has either met or exceeded Wall Street’s FFO forecasts for the last four quarters, aligning its adjusted FFO (AFFO) of $0.36 per share in the previous quarter with expectations.
Looking ahead, analysts are estimating an FFO of $1.94 per share for fiscal 2024, a slight increase of 1% from $1.92 per share reported in fiscal 2023.
Stock Performance and Market Comparisons
Over the past year, shares of HST have decreased by 13.8%, trailing behind the S&P 500 Index’s (SPX) 25% gain and the Real Estate Select Sector SPDR Fund’s (XLRE) 8.1% rise during the same period.
Recent Earnings Results and Guidance Adjustments
Following the release of its Q3 earnings on November 6, HST shares displayed relative stability. Despite a 12.2% annual decline in AFFO to $0.36 per share, this figure met forecasts. On a brighter note, the firm reported revenue of $1.3 billion, which marked an 8.6% year-over-year increase and slightly surpassed consensus estimates. This growth was fueled by increased revenues from room bookings, dining, and additional services.
However, due to significant interruptions caused by Hurricanes Helene and Milton, the company revised its full-year 2024 adjusted EBITDA and AFFO expectations downward. They now anticipate an AFFO of $1.92 per share and an adjusted EBITDA of $1.63 billion at the midpoint, which may have contributed to investor hesitance.
Analyst Outlook and Price Target
Wall Street analysts maintain a moderately optimistic stance on Host Hotels & Resorts, assigning an overall “Moderate Buy” rating. Out of 18 analysts covering the stock, 12 recommend “Strong Buy,” one proposes a “Moderate Buy,” while three suggest “Hold” and two indicate “Strong Sell.”
The average price target for HST is set at $20.50, suggesting a potential upside of 19.1% from current trading levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
