Pebblebrook Hotel Trust Reports Results For The Quarter Ended September 30 - Earnings Summary

For the quarter ended September 2024, Pebblebrook Hotel (PEB) reported revenue of $404.53 million, up 2.2% over the same period last year. EPS came in at $0.59, compared to -$0.57 in the year-ago quarter.

The reported revenue represents a surprise of +0.74% over the Zacks Consensus Estimate of $401.57 million. With the consensus EPS estimate being $0.53, the EPS surprise was +11.32%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Pebblebrook Hotel performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Same-Property RevPAR growth rate: 2.7% compared to the 1.8% average estimate based on three analysts.
• Total Guest Rooms: 12,000 versus the two-analyst average estimate of 11,702.
• Revenue- Food and beverage: $96 million versus $93.64 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +4.7% change.
• Revenue- Other operating: $45.78 million versus the five-analyst average estimate of $44.91 million. The reported number represents a year-over-year change of +2.3%.
• Revenue- Room: $262.76 million compared to the $261.92 million average estimate based on five analysts. The reported number represents a change of +1.3% year over year.
• Net Earnings Per Share (Diluted): $0.24 compared to the $0.01 average estimate based on five analysts.

View all Key Company Metrics for Pebblebrook Hotel here>>>

Shares of Pebblebrook Hotel have returned +3.7% over the past month versus the Zacks S&P 500 composite's +3.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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Pebblebrook Hotel (PEB) came out with quarterly funds from operations (FFO) of $0.59 per share, beating the Zacks Consensus Estimate of $0.53 per share. This compares to FFO of $0.61 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an FFO surprise of 11.32%. A quarter ago, it was expected that this hotel investment company would post FFO of $0.60 per share when it actually produced FFO of $0.69, delivering a surprise of 15%.

Over the last four quarters, the company has surpassed consensus FFO estimates four times.

Pebblebrook Hotel, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $404.53 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.74%. This compares to year-ago revenues of $395.8 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.

Pebblebrook Hotel shares have lost about 17.8% since the beginning of the year versus the S&P 500's gain of 24.3%.

What's Next for 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 measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Pebblebrook Hotel: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus FFO estimate is $0.19 on $342.04 million in revenues for the coming quarter and $1.62 on $1.45 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Gryphon Digital Mining, Inc. (GRYP), another stock in the broader Zacks Finance sector, has yet to report results for the quarter ended September 2024.

This company is expected to post quarterly loss of $0.16 per share in its upcoming report, which represents a year-over-year change of +96.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Gryphon Digital Mining, Inc.'s revenues are expected to be $3.9 million, up 87.5% from the year-ago quarter.

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