Extended Stay America (STAY) Expected to Post Earnings of $0.38 Per Share

Analysts expect that Extended Stay America (NYSE:STAY) will announce $0.38 earnings per share (EPS) for the current fiscal quarter, according to Zacks Investment Research. Five analysts have provided estimates for Extended Stay America’s earnings. The lowest EPS estimate is $0.38 and the highest is $0.40. Extended Stay America posted earnings per share of $0.35 in the same quarter last year, which indicates a positive year-over-year growth rate of 8.6%. The company is scheduled to announce its next quarterly earnings report on Monday, January 1st.

According to Zacks, analysts expect that Extended Stay America will report full-year earnings of $1.12 per share for the current financial year, with EPS estimates ranging from $1.08 to $1.15. For the next financial year, analysts expect that the firm will report earnings of $1.19 per share, with EPS estimates ranging from $1.11 to $1.41. Zacks Investment Research’s EPS calculations are a mean average based on a survey of analysts that that provide coverage for Extended Stay America.

Extended Stay America (NYSE:STAY) last announced its earnings results on Wednesday, July 25th. The company reported $0.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.34 by $0.01. The company had revenue of $336.50 million for the quarter, compared to analyst estimates of $336.68 million. Extended Stay America had a return on equity of 15.18% and a net margin of 5.47%. Extended Stay America’s revenue for the quarter was down .5% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.31 earnings per share.

Several research analysts recently weighed in on STAY shares. Stifel Nicolaus reissued a “buy” rating and set a $22.50 price target on shares of Extended Stay America in a research report on Thursday, July 26th. Zacks Investment Research raised Extended Stay America from a “hold” rating to a “buy” rating and set a $24.00 price target on the stock in a research report on Monday, July 2nd. Jefferies Financial Group started coverage on Extended Stay America in a research report on Thursday, May 31st. They set a “buy” rating and a $26.00 price target on the stock. Morgan Stanley upped their price target on Extended Stay America from $20.00 to $21.00 and gave the company an “equal weight” rating in a research report on Monday, April 30th. Finally, JPMorgan Chase & Co. upped their price target on Extended Stay America from $24.00 to $25.00 and gave the company an “overweight” rating in a research report on Friday, July 27th. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and nine have issued a buy rating to the company. Extended Stay America presently has a consensus rating of “Buy” and a consensus target price of $22.95.

Shares of Extended Stay America stock traded up $0.04 on Wednesday, reaching $20.07. 67,778 shares of the company were exchanged, compared to its average volume of 1,648,363. The firm has a market capitalization of $4.16 billion, a PE ratio of 20.12, a price-to-earnings-growth ratio of 2.54 and a beta of 0.96. The company has a quick ratio of 0.19, a current ratio of 0.19 and a debt-to-equity ratio of 0.98. Extended Stay America has a fifty-two week low of $16.27 and a fifty-two week high of $22.58.

The company also recently announced a quarterly dividend, which was paid on Thursday, August 23rd. Shareholders of record on Thursday, August 9th were given a $0.22 dividend. This represents a $0.88 annualized dividend and a yield of 4.38%. The ex-dividend date of this dividend was Wednesday, August 8th. Extended Stay America’s payout ratio is currently 88.00%.

In other Extended Stay America news, Director Richard F. Wallman sold 15,000 shares of the company’s stock in a transaction dated Thursday, August 2nd. The stock was sold at an average price of $21.49, for a total value of $322,350.00. Following the transaction, the director now directly owns 110,798 shares of the company’s stock, valued at approximately $2,381,049.02. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider Brian T. Nicholson bought 10,000 shares of the company’s stock in a transaction on Tuesday, July 31st. The stock was purchased at an average cost of $21.19 per share, for a total transaction of $211,900.00. The disclosure for this purchase can be found here. Corporate insiders own 0.72% of the company’s stock.

Hedge funds have recently modified their holdings of the business. Hilltop Holdings Inc. bought a new stake in shares of Extended Stay America during the 1st quarter worth about $201,000. Zurcher Kantonalbank Zurich Cantonalbank boosted its stake in shares of Extended Stay America by 35.5% during the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 14,194 shares of the company’s stock worth $307,000 after acquiring an additional 3,715 shares in the last quarter. Tiverton Asset Management LLC bought a new stake in shares of Extended Stay America during the 2nd quarter worth about $319,000. Bayesian Capital Management LP bought a new stake in shares of Extended Stay America during the 1st quarter worth about $293,000. Finally, James Investment Research Inc. boosted its stake in shares of Extended Stay America by 34.0% during the 2nd quarter. James Investment Research Inc. now owns 14,973 shares of the company’s stock worth $324,000 after acquiring an additional 3,800 shares in the last quarter. 96.67% of the stock is currently owned by institutional investors.

About Extended Stay America

Extended Stay America, Inc, together with its subsidiaries, owns, operates, and manages hotels in the United States. As of February 27, 2018, it had 599 hotels and approximately 66,000 rooms, as well as managed 26 hotels under the Extended Stay America brand. It serves customers in the mid-priced extended stay segment.

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