Choice Hotels (CHH) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates

For the quarter ended March 2023, Choice Hotels (CHH) reported revenue of $332.79 million, up 29.1% over the same period last year. EPS came in at $1.12, compared to $1.03 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $317.25 million, representing a surprise of +4.90%. The company delivered an EPS surprise of +3.70%, with the consensus EPS estimate being $1.08.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Choice Hotels performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Initial franchise and relicensing fees: $7.88 million versus the four-analyst average estimate of $8.96 million. The reported number represents a year-over-year change of -6.2%.

• Owned Hotels: $22.33 million versus $19.68 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +85.5% change.

• Royalty fees: $107.49 million versus the four-analyst average estimate of $109.57 million. The reported number represents a year-over-year change of +18.5%.

• Marketing and reservation: $170.62 million versus $160.25 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +34.7% change.

• Procurement services: $13.84 million compared to the $14.45 million average estimate based on three analysts. The reported number represents a change of +18.5% year over year.

• Other revenues: $10.63 million versus the three-analyst average estimate of $11.74 million. The reported number represents a year-over-year change of +29.1%.

View all Key Company Metrics for Choice Hotels here>>>

Shares of Choice Hotels have returned +9.2% over the past month versus the Zacks S&P 500 composite's +1.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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