Park Hotels & Resorts Earnings Preview

Park Hotels & Resorts PK will release its quarterly earnings report on Tuesday, 2024-10-29. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Park Hotels & Resorts to report an earnings per share (EPS) of $0.50.

Park Hotels & Resorts bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings History Snapshot

In the previous earnings release, the company beat EPS by $0.02, leading to a 2.06% drop in the share price the following trading session.

Here's a look at Park Hotels & Resorts's past performance and the resulting price change:

Stock Performance

Shares of Park Hotels & Resorts were trading at $13.89 as of October 25. Over the last 52-week period, shares are up 22.2%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on Park Hotels & Resorts

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Park Hotels & Resorts.

The consensus rating for Park Hotels & Resorts is Neutral, based on 5 analyst ratings. With an average one-year price target of $16.4, there's a potential 18.07% upside.

Peer Ratings Overview

The analysis below examines the analyst ratings and average 1-year price targets of Apple Hospitality REIT, Sunstone Hotel Invts and Diamondrock Hospitality, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Apple Hospitality REIT is maintaining an Outperform status according to analysts, with an average 1-year price target of $16.33, indicating a potential 17.57% upside.
• For Sunstone Hotel Invts, analysts project an Neutral trajectory, with an average 1-year price target of $10.5, indicating a potential 24.41% downside.
• The prevailing sentiment among analysts is an Neutral trajectory for Diamondrock Hospitality, with an average 1-year price target of $9.67, implying a potential 30.38% downside.

Peers Comparative Analysis Summary

Within the peer analysis summary, vital metrics for Apple Hospitality REIT, Sunstone Hotel Invts and Diamondrock Hospitality are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Park Hotels & Resorts ranks in the middle for consensus rating. It is at the bottom for revenue growth. It is at the top for gross profit. It is at the bottom for return on equity.

About Park Hotels & Resorts

Park Hotels & Resorts owns upper-upscale and luxury hotels with 23,428 rooms across 39 hotels in the United States. Park also has interests through joint ventures in another 2,665 rooms in four U.S. hotels. Park was spun out of narrow-moat Hilton Worldwide Holdings at the start of 2017, so most of the company's hotels are still under Hilton brands. The company has sold all its international hotels and many of its lower-quality U.S. hotels to focus on high-quality assets in domestic gateway markets.

Park Hotels & Resorts's Economic Impact: An Analysis

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Decline in Revenue: Over the 3 months period, Park Hotels & Resorts faced challenges, resulting in a decline of approximately -3.92% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Real Estate sector.

Net Margin: Park Hotels & Resorts's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 9.33%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Park Hotels & Resorts's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.69% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Park Hotels & Resorts's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.7% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a below-average debt-to-equity ratio of 1.27, Park Hotels & Resorts adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Park Hotels & Resorts visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.