Playa Hotels & Resorts (PLYA) posted a quarterly loss of $ 0.09 per share versus a loss of $ 0.08 according to Zacks’ consensus estimate. This compares to a loss of $ 0.57 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents a surprise earnings of -12.50%. A quarter ago, this all-inclusive developer and operator was expected to register a loss of $ 0.19 per share when it actually generated a loss of $ 0.06, generating a loss of $ 0.06 per share. 68.42% surprise.
In the past four quarters, the company has beaten consensus EPS estimates three times.
Playa Hotels, which is part of Zacks ‘hotel and motel industry, reported revenue of $ 151.29 million for the quarter ended September 2021, beating Zacks’ consensus estimate by 6.74%. This compares to a year ago revenue of $ 28.74 million. The company has exceeded consensus revenue estimates four times in the past four quarters.
The sustainability of the immediate stock price movement based on recently released numbers and future earnings expectations will depend primarily on management feedback on the profit call.
Shares of Playa Hotels have added about 47.2% year-to-date against the 23.3% gain in the S&P 500.
What’s next for Playa hotels?
While Playa Hotels has outperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the title?
There are no easy answers to this key question, but a reliable metric that can help investors solve this problem is the company’s earnings outlook. This includes not only the current consensus earnings expectations for the coming quarter (s), but also how those expectations have changed in recent times.
Empirical research shows a strong correlation between short-term stock market movements and trends in earnings estimate revisions. Investors can follow these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Prior to this publication of the results, the trend of revised estimates for Playa Hotels was mixed. While the magnitude and direction of estimate revisions may change as a result of the company’s just released earnings report, the current status results in a Zacks Rank # 3 (Hold) for the stock. Thus, stocks are expected to move in line with the market in the near future. You can see the full list of Zacks # 1 Rank (Strong Buy) stocks today here.
It will be interesting to see how the estimates for the next quarters and the current year evolve in the days to come. Current consensus estimate of EPS is $ -0.02 on $ 157.5 million of revenue for the upcoming quarter and $ -0.57 on $ 501.18 million of revenue for the current year .
Investors should be aware that the outlook for the sector can also have a significant impact on the performance of the stock. In terms of Zacks industry rankings, hotels and motels currently rank in the top 42% of the 250+ Zacks industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.
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You’ve known this company from its past glory days, but few would expect it to be ready for a monster turnaround. Fresh out of a successful repositioning and flush with A-List celebrity mentions, it could rival or overtake other recent Zacks stocks which are expected to double as Boston Beer Company which climbed + 143.0% in just a bit. more than 9 months and Nvidia which climbed + 175.9% in a year.
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