Workforce housing company Target Hospitality (NASDAQ: TH) will be reporting results this Monday before market open. Here’s what to expect.
Target Hospitality missed analysts’ revenue expectations last quarter, reporting revenues of $72.78 million, up 4.1% year on year. It was a very strong quarter for the company, with full-year EBITDA guidance exceeding analysts’ expectations and full-year revenue guidance exceeding analysts’ expectations. It reported 9,468 utilized beds, down 4.3% year on year.
Is Target Hospitality a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Target Hospitality’s revenue to grow 28.7% year on year, a reversal from the 38.8% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Target Hospitality rarely misses Wall Street’s revenue estimates.
Looking at Target Hospitality’s peers in the consumer discretionary - travel and vacation providers segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Delta delivered year-on-year revenue growth of 18.7%, beating analysts’ expectations by 3.9%, and Marriott Vacations reported revenues up 5.9%, topping estimates by 2.1%. Delta traded down 3.2% following the results while Marriott Vacations was up 21.4%.
Read our full analysis of Delta’s results here and Marriott Vacations’s results here.
Investors in the consumer discretionary - travel and vacation providers segment have had steady hands going into earnings, with share prices up 1.8% on average over the last month. Target Hospitality is down 7.9% during the same time and is heading into earnings with an average analyst price target of $22.75 (compared to the current share price of $16.55).
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