Workforce housing company Target Hospitality (NASDAQ:TH) will be reporting results this Thursday before market open. Here’s what to expect.
Target Hospitality beat analysts’ revenue expectations by 7% last quarter, reporting revenues of $69.9 million, down 34.5% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EBITDA estimates but a significant miss of analysts’ adjusted operating income estimates. It reported 9,898 utilized beds, down 29.5% year on year.
Is Target Hospitality a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Target Hospitality’s revenue to decline 44% year on year to $56.42 million, a further deceleration from the 29.9% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.11 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Target Hospitality has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 5.2% on average.
Looking at Target Hospitality’s peers in the travel and vacation providers segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Lindblad Expeditions delivered year-on-year revenue growth of 23%, beating analysts’ expectations by 5.6%, and Carnival reported revenues up 9.5%, topping estimates by 1.7%. Lindblad Expeditions traded up 16.1% following the results while Carnival was also up 5.9%.
Read our full analysis of Lindblad Expeditions’s results here and Carnival’s results here.
Investors in the travel and vacation providers segment have had steady hands going into earnings, with share prices up 1.6% on average over the last month. Target Hospitality is down 2.2% during the same time and is heading into earnings with an average analyst price target of $8.75 (compared to the current share price of $7.43).
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