Pebblebrook Hotel (PEB) Beats FFO and Third Quarter Revenue Estimates – October 28, 2021
Pebblebrook Hotel (PEB – Free Report) came out with quarterly operating funds (FFOs) of $ 0.16 per share, beating Zacks’ consensus estimate of $ 0.15 per share. This compares to a loss of $ 0.51 per share a year ago. These figures are corrected for non-recurring items.
This quarterly report represents a surprise FFO of 6.67%. A quarter ago, this hotel investment firm was expected to record a loss of $ 0.11 per share when it actually produced a loss of $ 0.12, offering a surprise of – 9.09%.
In the past four quarters, the company has exceeded consensus FFO estimates only once.
The Pebblebrook hotel, which is owned by Zacks REIT and Equity Trust – Other industry, reported revenue of $ 238.81 million for the quarter ended September 2021, beating Zacks’ consensus estimate by 3.49%. This compares to a year ago revenue of $ 76.98 million. The company has beaten consensus revenue estimates three times in the past four quarters.
The sustainability of the immediate stock price move based on recently released numbers and FFO’s future expectations will depend primarily on management comments on the profit call.
Pebblebrook Hotel shares have added about 14.5% year-to-date against the S&P 500’s 21.2% gain.
What’s next for the Pebblebrook Hotel?
While Pebblebrook Hotel has underperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?
There are no easy answers to this key question, but one reliable metric that can help investors address this issue is the company’s FFO outlook. This not only includes the current consensus FFO expectations for the upcoming quarter (s), but also how those expectations have changed in recent times.
Empirical research shows a strong correlation between short-term stock movements and trends in estimate revisions. Investors can track these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Prior to this release of results, the trend in revised estimates for Pebblebrook Hotel was favorable. While the magnitude and direction of estimate revisions may change as a result of the company’s just released earnings report, the current status translates to a Zacks Rank # 2 (Buy) for the stock. Thus, stocks are expected to outperform the market in the near future. You can see the full list of Zacks # 1 Rank (Strong Buy) stocks today here.
It will be interesting to see how the estimates for the next quarters and the current year evolve in the days to come. The current consensus FFO estimate is $ 0.05 out of $ 223.46 million in revenue for the coming quarter and $ 0.34 out of $ 701.18 million in revenue for the current year.
Investors should be aware that the outlook for the sector can also have a significant impact on the performance of the stock. In terms of industry rankings Zacks, REIT and Equity Trust – Other are currently in the top 28% of Zacks 250+ industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.