Valued at a market cap of almost $12.3 billion, Host Hotels & Resorts, Inc. (HST) is the world's largest publicly traded lodging real estate investment trust (REIT) and one of the largest owners of luxury and upper-upscale hotels. The Maryland-based company is expected to announce its fiscal Q3 earnings results after the market closes on Wednesday, Nov. 6.
Ahead of this event, analysts expect the REIT to report an FFO of $0.36 per share, down 12.2% from $0.41 per share in the year-ago quarter. The company has consistently met or beaten Wall Street's bottom-line estimates in the last four quarters. In Q2, the company’s adjusted FFO of $0.57 outpaced the consensus estimates by 1.8% and increased 7.5% from a year ago.
For fiscal 2024, analysts expect HST to report an FFO of $1.96, up 2.1% from $1.92 in fiscal 2023. Moreover, EPS is expected to increase marginally to $1.97 in fiscal 2025.
Shares of HST have declined 9.7% on a YTD basis, significantly underperforming both the S&P 500 Index's ($SPX) 21.7% rise and the Real Estate Select Sector SPDR Fund’s (XLRE) nearly 11.5% return over the same period.
Despite beating Wall Street’s FFO estimates and meeting the revenue estimates of $1.47 billion, shares of HST plunged 4.3% after its Q2 earnings release on Jul. 31. The fall in stock price can be primarily attributed to the company’s reduced full-year 2024 guidance for revenues, operating margins, and comparable hotel EBITDA margin due to slower than expected recovery from the wildfires in Maui and moderating leisure transient demand.
Analysts' consensus view on Host Hotels & Resorts’ stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 18 analysts covering the stock, 12 recommend a "Strong Buy," one suggests a "Moderate Buy," three indicate a “Hold,” and two recommend a “Strong Sell” rating.
The average analyst price target for HST is $20.63, indicating a 17.6% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
