RLJ Lodging (RLJ) got here out with a quarterly lack of $0.18 per share versus the Zacks Consensus Estimate of a lack of $0.26. This compares to FFO of $0.10 per share a 12 months in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an FFO shock of 30.77%. 1 / 4 in the past, it was anticipated that this resort actual property funding belief would put up a lack of $0.29 per share when it truly produced a lack of $0.28, delivering a shock of three.45%.
Over the past 4 quarters, the corporate has surpassed consensus FFO estimates thrice.
RLJ Lodging, which belongs to the Zacks REIT and Fairness Belief – Different trade, posted revenues of $119.55 million for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 8.45%. This compares to year-ago revenues of $265.48 million. The corporate has topped consensus income estimates simply as soon as during the last 4 quarters.
The sustainability of the inventory’s quick value motion primarily based on the recently-released numbers and future FFO expectations will largely depend upon administration’s commentary on the earnings name.
RLJ Lodging shares have added about 12.4% because the starting of the 12 months versus the S&P 500’s achieve of 10.9%.
What’s Subsequent for RLJ Lodging?
Whereas RLJ Lodging has outperformed the market to date this 12 months, the query that involves traders’ minds is: what’s subsequent for the inventory?
There aren’t any simple solutions to this key query, however one dependable measure that may assist traders handle that is the corporate’s FFO outlook. Not solely does this embody present consensus FFO expectations for the approaching quarter(s), but in addition how these expectations have modified currently.
Empirical analysis reveals a robust correlation between near-term inventory actions and traits in estimate revisions. Buyers can monitor such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a powerful monitor file of harnessing the ability of estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for RLJ Lodging was combined. Whereas the magnitude and path of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out in step with the market within the close to future. You possibly can see the entire listing of at this time’s Zacks #1 Rank (Robust Purchase) shares right here.
Will probably be fascinating to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus FFO estimate is -$0.17 on $162.85 million in revenues for the approaching quarter and -$0.36 on $699.97 million in revenues for the present fiscal 12 months.
Buyers ought to be aware of the truth that the outlook for the trade can have a fabric impression on the efficiency of the inventory as nicely. By way of the Zacks Trade Rank, REIT and Fairness Belief – Different is at present within the backside 18% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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RLJ Lodging Belief (RLJ): Free Inventory Evaluation Report
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