FelCor Lodging Trust Earnings: Profit Snaps Streak of Losses

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FelCor Lodging Trust (NYSE:FCH) climbed to a profit in the second quarter, but still came up short of analyst expectations. Felcor Lodging Trust is a real estate investment trust that is engaged in hospitality business.

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FelCor Lodging Trust Earnings Cheat Sheet

Results: Reported a profit of $11.9 million (2 cents per diluted share) in the quarter. FelCor Lodging Trust had a net loss of $42.3 million or a loss 42 cents per share in the year-earlier quarter.

Revenue: Rose 6.9% to $257 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: FelCor Lodging Trust fell short of the mean analyst estimate of 18 cents per share. Analysts were expecting revenue of $257.7 million.

Quoting Management: Commenting on second quarter results, Richard A. Smith, President and Chief Executive Officer of FelCor, said, “I am very pleased with the progress we made on our strategic initiatives this quarter. We have completed work at nine of the 10 hotels undergoing renovations and redevelopments this year. We expect our portfolio to benefit from improvements at these hotels, as well as our newly-acquired hotels, which will generate above-market growth going forward. Lodging industry trends are encouraging; group pace is accelerating, and the portfolio is nearing prior peak occupancy, while new supply remains constrained. As a result, we are experiencing broad-based strength in almost all markets. These tailwinds allow us to further remix customer segments and increase absolute rates. ADR for our portfolio increased 8.3% in June, and we expect that trend to continue. Therefore, we have increased our annual guidance to reflect higher RevPAR growth for the second half of the year. Furthermore, our asset sale program is progressing as planned. We sold six hotels in the second quarter, have agreed to sell one more hotel with a hard-money deposit, are under contract to sell two additional hotels and are in various negotiations with regard to our other properties that are currently being marketed for sale.”

Key Stats:

The company’s profit in the latest quarter follows losses in the three previous quarters. The company reported a net loss of $28.5 million in the first quarter, a loss of $33.1 million in the fourth quarter of the last fiscal year and a loss of $22.8 million in the third of the last fiscal year.

The company fell short of estimates last quarter after being in line with expectations the quarter before with a loss of -2 cents.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the third quarter has risen to 9 cents per share from 8 cents. Over the past sixty days, the average estimate for the fiscal year has reached 25 cents per share, a decline from 26 cents.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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