Target Hospitality Q4 Earnings & Revenues Beat Estimates, Stock Rises

Target Hospitality Corp. TH reported fourth-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.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Following the results, the company's shares gained 6.4% during trading hours yesterday. Target Hospitality's results benefited from operational flexibility, enabling it to navigate varying business cycles and shifting customer demands. The company's strategic growth initiatives, including the multi-year Workforce Hub Contract award, played a crucial role in expanding and diversifying its contract portfolio. Additionally, the seamless reactivation of its Dilley, Texas assets, supported by well-positioned infrastructure and strong reputation, further contributed to positive momentum.TH’s Q4 Earnings and RevenuesIn the quarter under review, the company reported an adjusted earnings per share (EPS) of 12 cents, which beat the Zacks Consensus Estimate of 6 cents. In the prior-year quarter, it reported an adjusted EPS of 29 cents.Total revenues of $83.7 million beat the consensus estimate of $80 million by 4.5%. However, the top line declined 33.7% 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 $43.7 million compared with $87.5 million reported in the year-ago quarter. The segment's adjusted gross profit was $37.7 million compared with $65.7 million reported in the prior-year quarter.The decline was largely attributed to a reduction in PCC variable services revenues, along with the absence of PCC Infrastructure Revenue Amortization, which were fully recognized by November 2023. Additionally, the termination of the STFRC Contract, effective from Aug. 9, 2024, contributed to the overall decrease.Hospitality & Facilities Services - South: During the fourth quarter, revenues in this segment amounted to $36.7 million compared with $36.2 million reported in the year-ago quarter.During the quarter, average utilized beds were 5,474 compared with 5,105 reported in the prior-year quarter. The average daily rate was $72.14 compared with $76.58 reported in the prior-year quarter. This upside was backed by the company’s added service offering. The segment's adjusted gross profit was $12.6 million compared with $12.4 million reported in the prior-year quarter.All Other: Revenues of this segment amounted to $3.3 million compared with $2.5 million reported in the year-ago quarter.TH’s Operating HighlightsDuring the fourth quarter of 2024, the company’s selling, general and administrative expenses amounted to $12.6 million compared with $12.2 million reported in the prior-year period.Net income during the quarter was $12.5 million compared with $37.8 million reported in the prior-year quarter.Adjusted EBITDA during the quarter amounted to $41.1 million compared with $67.7 million reported in the prior-year quarter.Balance Sheet of THAs of Dec 31. 30, 2024, TH’s cash and cash equivalents amounted to $190.7 million compared with $103.9 million as of Dec. 31, 2023.TH’s 2025 OutlookIn 2025, the company anticipates revenues in the range of $265 million to $285 million. It expects adjusted EBITDA to be in the range of $47-$57 million.TH’s Zacks RankTarget Hospitality carries a Zacks Rank #3 (Hold) at present.Key PicksSome better-ranked stocks in the Zacks Consumer Discretionary sector are RCI Hospitality Holdings, Inc. RICK, Mattel, Inc. MAT and Royal Caribbean Cruises Ltd. RCL.RCI Hospitality currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.RCI Hospitality delivered a trailing four-quarter earnings surprise of negative 62.9%, on average. The stock has declined 15.5% in the past year. The Zacks Consensus Estimate for RICK’s 2025 sales and EPS indicates growth of 2.5% and 1,278.8%, respectively, from year-ago levels.Mattel currently flaunts a Zacks Rank #1. MAT delivered a trailing four-quarter earnings surprise of 37.6%, on average. The stock has gained 1.5% in the past year.The Zacks Consensus Estimate for Mattel’s 2025 sales and EPS indicates growth of 1.4% and 4.9%, respectively, from year-ago levels.Royal Caribbean currently carries a Zacks Rank #2 (Buy). RCL delivered a trailing four-quarter earnings surprise of 15.7%, on average. The stock has surged 57.8% in the past year.The Zacks Consensus Estimate for Royal Caribbean’s 2025 sales and EPS indicates growth of 9% and 26.4%, respectively, from the year-ago levels.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks 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 RCI Hospitality Holdings, Inc. (RICK): Free Stock Analysis Report Target Hospitality Corp. (TH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks