Target Hospitality Q3 Earnings & Revenues Beat Estimates, Fall Y/Y

Target Hospitality Corp. TH reported third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. However, the top and bottom lines declined on a year-over-year basis.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Following the results, the company's shares gained 6.8% during trading hours yesterday. Positive investor sentiments were witnessed as the company reported strong customer demand and a high degree of revenue visibility. TH is pursuing both organic growth and selective inorganic opportunities aligned with its core competencies, all while prioritizing disciplined capital use. The company aims to achieve zero net debt by 2024 end.TH’s Q3 Earnings and RevenuesIn the quarter under review, the company reported an adjusted earnings per share (EPS) of 20 cents, beating the Zacks Consensus Estimate of 12 cents per share. In the prior-year quarter, the company reported an adjusted EPS of 43 cents.Total revenues of $95.2 million beat the consensus estimate of $88 million by 8.3%. However, the top line declined 34.8% year over year.Target Hospitality Corp. Price, Consensus and EPS Surprise Target Hospitality Corp. price-consensus-eps-surprise-chart | Target Hospitality Corp. QuoteTH Segments DiscussionGovernment: During the quarter, revenues in this segment amounted to $53.5 million, compared with $105.5 million reported in the year-ago quarter. The segment's adjusted gross profit came in at $46.3 million compared with $90.5 million reported in the prior-year quarter.The declines were largely due to the non-cash, one-time Infrastructure Revenue Amortization related to the Company’s PCC community, which was fully amortized by November 2023. Additionally, the lower PCC minimum lease and variable services revenues and the termination of the STFRC Contract (on Aug. 9, 2024) added to the downside.Hospitality & Facilities Services - South: During the third quarter, revenues in this segment amounted to $38 million compared with $37.5 million reported in the year-ago quarter.During the quarter, average utilized beds came in at 5,614 compared with 5,342 reported in the prior-year quarter. The average daily rate came in at $72.96 compared with $75.71 reported in the prior-year quarter. The upside was backed by the company’s premier service offering. The segment's adjusted gross profit came in at $12.3 million compared with $14.1 million reported in the prior-year quarter.All Other: Revenues of this segment amounted to $3.7 million, compared with $2.9 million reported in the year-ago quarter.TH’s Operating HighlightsDuring the third quarter of 2024, the company’s selling, general and administrative expenses amounted to $13.3 million compared with $15.3 million reported in the prior-year period.Net income during the quarter came in at $20.1 million compared with $45.6 million reported in the prior-year quarter.Adjusted EBITDA during the quarter came in at $49.7 million compared with $95 million reported in the prior-year quarter.Balance SheetAs of Sept. 30, 2024, TH’s cash and cash equivalents amounted to $177.7 million compared with $103.9 million as of Dec. 31, 2023.TH’s 2024 OutlookIn 2024, the company anticipates revenues in the range of $375 to $385 million. The company expects adjusted EBITDA to be in the range of $184-$190 million. TH expects total capital spending in 2024 to be in the range of $25 to $30 million.TH’s Zacks RankTarget Hospitality carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.Recent Consumer Discretionary ReleasesRoyal Caribbean Cruises Ltd. RCL posted impressive third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.In the quarter, the company exceeded its guidance, driven by stronger pricing on close-in demand, continued growth in onboard revenues and reduced costs due to timing factors. The company has raised its outlook for 2024 and reported elevated demand patterns heading into 2025.Mattel, Inc. MAT reported impressive third-quarter 2024 results, wherein the adjusted earnings and net sales topped the Zacks Consensus Estimate. The top line surpassed the consensus estimate after missing it for three consecutive quarters. On a year-over-year basis, net sales declined while adjusted earnings grew.The company’s quarterly results benefited from its Optimizing for Profitable Growth program along with the focus on its multi-year strategy to expand its IP-driven toy business and entertainment offering. Although the top line was adversely impacted by reduced sales from both the reportable segments, the bottom line showed resilience through operational efficiencies.Hilton Worldwide Holdings Inc. HLT reported third-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. Both the metrics increased on a year-over-year basis.The company's performance was backed by notable improvements in RevPAR, attributed to higher occupancy rates and average daily rates. Furthermore, in the quarter, Hilton opened 531 new hotels. It achieved net room growth of 33,600. As of Sept. 30, 2024, Hilton's development pipeline comprised nearly 3,525 hotels, with almost 492,400 rooms across 120 countries and territories, including 28 countries and regions with no running hotels. For 2024, the company expects net unit growth in the range of 7-7.5%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report Mattel, Inc. (MAT): Free Stock Analysis Report Hilton Worldwide Holdings Inc. (HLT): Free Stock Analysis Report Target Hospitality Corp. (TH): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks