Choice Hotels: Still A Buy With Earnings Beat And Guidance Raise

The Value Pendulum
Investing Group Leader
(9min)

Summary

  • CHH's Q3 2024 non-GAAP adjusted EPS rose by +22.5% YoY and exceeded the consensus estimate by +16.6%, thanks to royalty rate expansion and a higher number of hotel rooms.
  • The company raised its full-year normalized EPS outlook by +4% to $6.785 as per the mid-point of its guidance, Choice Hotels' favorable prospects are supported by a robust pipeline.
  • I retain my Buy rating for Choice Hotels, in view of CHH's beat-and-raise quarter.
  • Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More »

Wide shot of suitcase at end of bed in luxury hotel room

Thomas Barwick

I continue to award a Buy investment rating to Choice Hotels International, Inc.'s (NYSE:CHH) shares. CHH's recent beat-and-raise quarter has given me the conviction to stay positive on the stock. I anticipate that Choice Hotels' financial performance will get

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This article was written by

The Value Pendulum
12.78K Followers

The Value Pendulum is an Asian equity market specialist with over a decade of experience on both the buy and sell sides.

He is the author of the investing group Asia Value & Moat Stocks, providing ideas for value investors seeking investment opportunities listed in Asia, with a particular focus on the Hong Kong market. He hunts for deep value balance sheet bargains and wide moat stocks and provides a range of watch lists with monthly updates within his investing group.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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