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Target Hospitality to Post Q4 Earnings: What's in Store for the Stock?
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Target Hospitality Corp.'s(TH - Free Report) earnings and revenues are likely to decrease when the company reports fourth-quarter 2024 results.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
In the last reported quarter, earnings and revenues topped the Zacks Consensus Estimate by 66.7% and 8.3%, respectively. On a year-over-year basis, the bottom and top lines declined 53.5% and 34.8%, respectively.
Trend in Estimate Revision for TH
The Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) is pegged at 7 cents, indicating a deterioration of 75.9% from 29 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $80.1 million. The projection suggests a 36.5% decline from the year-ago quarter’s reported figure.
Let's take a look at how things have shaped up in the quarter.
Factors Likely to Shape TH’s Quarterly Results
Target Hospitality’s fourth-quarter operations are likely to have navigated through volatility arising from contract shifts and cost pressures.
TH’s government segment, a key revenue driver, may have faced short-term challenges due to contract adjustments. While TH expects the normal course renewal of its PCC community contract, fluctuations in occupancy-based variables could have created revenue headwinds in the fourth quarter.
A shift in contract mix could have pressured TH’s fourth-quarter margins. The government segment, known for its high revenue visibility and strong cash flow, has seen revenue declines due to non-cash, nonrecurring infrastructure revenue amortization. Additionally, lower minimum lease and variable services revenues at PCC may have impacted profitability.
The Zacks Consensus Estimate for fourth-quarter Government segment revenues is pegged at $43.3 million compared with $87.5 million reported in the prior-year quarter. Revenues from the HFS segment are pegged at $35.1 million compared with $36.2 million reported in the prior year quarter.
Rising operational costs may have weighed on TH’s bottom line in the fourth quarter. Moreover, investments in network optimization and service enhancements may have resulted in near-term margin compression. TH’s capital expenditures, focused on maintaining and enhancing its asset base, could have contributed to increased cash outflows in the to-be-reported quarter.
What Our Model Says About TH Stock
Our proven model does not conclusively predict an earnings beat for Target Hospitality this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that's not the case here.
Earnings ESP for TH: Target Hospitality has an Earnings ESP of -25.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Target Hospitality’s Zacks Rank: Currently, the company has a Zacks Rank #3.
The company's performance was backed by strong demand for leisure travel, with continued growth in business transient and group travel. These robust trends supported growth in occupancy and average daily rate, resulting in increased revenue per available room. Furthermore, favorable net unit growth compared with last year and the continuous efforts in expanding the portfolio globally added to the uptrend. HLT expects the robust travel trends to continue into 2025, positioning it to deliver strong results in the near term.
Mattel, Inc. (MAT - Free Report) reported fourth-quarter 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
In 2024, Mattel repurchased $400 million worth of shares and improved its leverage ratio. The company remains ahead of schedule in achieving its $200 million cost-savings target by 2026. For 2025, Mattel projects continued revenue and earnings growth, increased investments in digital gaming and a $600 million share repurchase program, underscoring its commitment to long-term shareholder value creation. MAT anticipates its adjusted EPS in 2025 to be between $1.66 and $1.72 compared with $1.62 reported in 2024.
Marriott International, Inc. (MAR - Free Report) reported fourth-quarter 2024 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The top line increased year over year while the bottom line declined from the prior-year quarter.
Marriott posted strong results in 2024, driven by steady global travel demand and strategic portfolio expansion. The company’s development momentum remained strong, with the signing of a record number of new deals and its development pipeline reaching 577,000 rooms. Given its vast global footprint, a loyalty program comprising nearly 228 million Marriott Bonvoy members and an asset-light model, MAR remains well-positioned to capitalize on travel demand and drive growth in the upcoming periods.
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Target Hospitality to Post Q4 Earnings: What's in Store for the Stock?
Target Hospitality Corp.'s (TH - Free Report) earnings and revenues are likely to decrease when the company reports fourth-quarter 2024 results.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
In the last reported quarter, earnings and revenues topped the Zacks Consensus Estimate by 66.7% and 8.3%, respectively. On a year-over-year basis, the bottom and top lines declined 53.5% and 34.8%, respectively.
Trend in Estimate Revision for TH
The Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) is pegged at 7 cents, indicating a deterioration of 75.9% from 29 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $80.1 million. The projection suggests a 36.5% decline from the year-ago quarter’s reported figure.
Target Hospitality Corp. Price and EPS Surprise
Target Hospitality Corp. price-eps-surprise | Target Hospitality Corp. Quote
Let's take a look at how things have shaped up in the quarter.
Factors Likely to Shape TH’s Quarterly Results
Target Hospitality’s fourth-quarter operations are likely to have navigated through volatility arising from contract shifts and cost pressures.
TH’s government segment, a key revenue driver, may have faced short-term challenges due to contract adjustments. While TH expects the normal course renewal of its PCC community contract, fluctuations in occupancy-based variables could have created revenue headwinds in the fourth quarter.
A shift in contract mix could have pressured TH’s fourth-quarter margins. The government segment, known for its high revenue visibility and strong cash flow, has seen revenue declines due to non-cash, nonrecurring infrastructure revenue amortization. Additionally, lower minimum lease and variable services revenues at PCC may have impacted profitability.
The Zacks Consensus Estimate for fourth-quarter Government segment revenues is pegged at $43.3 million compared with $87.5 million reported in the prior-year quarter. Revenues from the HFS segment are pegged at $35.1 million compared with $36.2 million reported in the prior year quarter.
Rising operational costs may have weighed on TH’s bottom line in the fourth quarter. Moreover, investments in network optimization and service enhancements may have resulted in near-term margin compression. TH’s capital expenditures, focused on maintaining and enhancing its asset base, could have contributed to increased cash outflows in the to-be-reported quarter.
What Our Model Says About TH Stock
Our proven model does not conclusively predict an earnings beat for Target Hospitality this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that's not the case here.
Earnings ESP for TH: Target Hospitality has an Earnings ESP of -25.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Target Hospitality’s Zacks Rank: Currently, the company has a Zacks Rank #3.
Recent Consumer Discretionary Releases
Hilton Worldwide Holdings Inc. (HLT - Free Report) reported exceptional fourth-quarter 2024 results, wherein adjusted earnings and total revenues surpassed the Zacks Consensus Estimate and grew year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company's performance was backed by strong demand for leisure travel, with continued growth in business transient and group travel. These robust trends supported growth in occupancy and average daily rate, resulting in increased revenue per available room. Furthermore, favorable net unit growth compared with last year and the continuous efforts in expanding the portfolio globally added to the uptrend. HLT expects the robust travel trends to continue into 2025, positioning it to deliver strong results in the near term.
Mattel, Inc. (MAT - Free Report) reported fourth-quarter 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
In 2024, Mattel repurchased $400 million worth of shares and improved its leverage ratio. The company remains ahead of schedule in achieving its $200 million cost-savings target by 2026. For 2025, Mattel projects continued revenue and earnings growth, increased investments in digital gaming and a $600 million share repurchase program, underscoring its commitment to long-term shareholder value creation. MAT anticipates its adjusted EPS in 2025 to be between $1.66 and $1.72 compared with $1.62 reported in 2024.
Marriott International, Inc. (MAR - Free Report) reported fourth-quarter 2024 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The top line increased year over year while the bottom line declined from the prior-year quarter.
Marriott posted strong results in 2024, driven by steady global travel demand and strategic portfolio expansion. The company’s development momentum remained strong, with the signing of a record number of new deals and its development pipeline reaching 577,000 rooms. Given its vast global footprint, a loyalty program comprising nearly 228 million Marriott Bonvoy members and an asset-light model, MAR remains well-positioned to capitalize on travel demand and drive growth in the upcoming periods.