DiamondRock Hospitality: Solid Q2 Performance, Strategic Share Repurchases Signal Long-Term Potential
DiamondRock Hospitality reported strong Q2 earnings with revenue up 4.8% YoY, FFO per share beating estimates, and increased adjusted EBITDA by 7.8%. The company repurchased $20.6mn worth of shares in Q2 and has $176.5mn remaining capacity for future repurchases. DRH's low forward AFFO payout ratio and net debt position suggest potential for future growth and value creation for shareholders.
DiamondRock Hospitality (DRH) Upgraded to Buy: Here's What You Should Know
DiamondRock Hospitality (DRH) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
DRH vs. GLPI: Which Stock Is the Better Value Option?
Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both DiamondRock Hospitality (DRH) and Gaming and Leisure Properties (GLPI). But which of these two stocks presents investors with the better value opportunity right now?
DiamondRock Hospitality Company (DRH) Q2 2024 Earnings Call Transcript
DiamondRock Hospitality Company (NYSE:DRH ) Q2 2024 Earnings Conference Call August 2, 2024 9:00 AM ET Company Participants Briony Quinn - CFO Jeff Donnelly - CEO Justin Leonard - President and COO Conference Call Participants Austin Wurschmidt - KeyBanc Capital Markets Patrick Scholes - Truist Dori Kesten - Wells Fargo Securities Smedes Rose - Citi Duane Pfennigwerth - Evercore ISI Michael Bellisario - Baird Dany Asad - Bank of America Chris Woronka - Deutsche Bank Chris Darling - Green Street William Crow - Raymond James Operator Good day and thank you for standing by. Welcome to DiamondRock Hospitality Company Second Quarter 2024 Earnings Conference Call.
DiamondRock Hospitality (DRH) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
While the top- and bottom-line numbers for DiamondRock Hospitality (DRH) give a sense of how the business performed in the quarter ended June 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
DiamondRock Hospitality (DRH) Beats Q2 FFO and Revenue Estimates
DiamondRock Hospitality (DRH) came out with quarterly funds from operations (FFO) of $0.34 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to FFO of $0.32 per share a year ago.
DiamondRock Hospitality: Balance Sheet Strength Indicates Stable Preferred Dividend Coverage
DiamondRock Hospitality's preferred shares offer a 7.2% total return if called in 2025, with a 6.2% annualized return. The REIT's solid performance and balance sheet strength indicate a stable preferred dividend coverage. Consider investing in DiamondRock's preferred shares as a short-term option with potential for a 6.2% annualized yield.
Swiss National Bank Has $3.88 Million Stock Position in DiamondRock Hospitality (NYSE:DRH)
Swiss National Bank cut its stake in shares of DiamondRock Hospitality (NYSE:DRH – Free Report) by 10.4% in the 4th quarter, according to its most recent Form 13F filing with the SEC. The fund owned 413,200 shares of the real estate investment trust’s stock after selling 47,900 shares during the period. Swiss National Bank owned 0.20% of DiamondRock Hospitality worth $3,880,000 as of its most recent filing with the SEC. A number of other hedge funds have also recently bought and sold shares of DRH. Pzena Investment Management LLC boosted its holdings in shares of DiamondRock Hospitality by 9.1% in the 3rd quarter. Pzena Investment Management LLC now owns 9,720,155 shares of the real estate investment trust’s stock valued at $78,053,000 after buying an additional 810,972 shares during the last quarter. Invesco Ltd. increased its stake in shares of DiamondRock Hospitality by 3.1% during the 3rd quarter. Invesco Ltd. now owns 5,455,648 shares of the real estate investment trust’s stock worth $43,809,000 after purchasing an additional 165,142 shares during the last quarter. Charles Schwab Investment Management Inc. raised its holdings in shares of DiamondRock Hospitality by 4.5% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 4,326,316 shares of the real estate investment trust’s stock valued at $34,740,000 after purchasing an additional 188,010 shares during the period. Northern Trust Corp lifted its stake in DiamondRock Hospitality by 2.3% in the 3rd quarter. Northern Trust Corp now owns 3,291,311 shares of the real estate investment trust’s stock valued at $26,429,000 after purchasing an additional 73,745 shares during the last quarter. Finally, Great Lakes Advisors LLC grew its holdings in DiamondRock Hospitality by 9.7% during the third quarter. Great Lakes Advisors LLC now owns 734,391 shares of the real estate investment trust’s stock worth $5,897,000 after purchasing an additional 64,852 shares during the period. DiamondRock Hospitality Stock Performance DRH opened at $8.44 on Monday. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.04 and a quick ratio of 2.04. The business has a fifty day simple moving average of $9.14 and a 200 day simple moving average of $9.06. DiamondRock Hospitality has a 1 year low of $7.33 and a 1 year high of $9.99. The company has a market capitalization of $1.77 billion, a PE ratio of 23.44, a price-to-earnings-growth ratio of 6.25 and a beta of 1.61. DiamondRock Hospitality (NYSE:DRH – Get Free Report) last released its quarterly earnings results on Friday, February 23rd. The real estate investment trust reported $0.04 EPS for the quarter, missing the consensus estimate of $0.18 by ($0.14). DiamondRock Hospitality had a net margin of 7.86% and a return on equity of 5.20%. The business had revenue of $263.50 million during the quarter, compared to analyst estimates of $261.45 million. During the same quarter last year, the company posted $0.23 earnings per share. The company’s revenue was up 3.3% on a year-over-year basis. Research analysts expect that DiamondRock Hospitality will post 0.96 EPS for the current year. DiamondRock Hospitality Announces Dividend The business also recently declared a quarterly dividend, which was paid on Friday, April 12th. Investors of record on Friday, March 29th were paid a $0.03 dividend. This represents a $0.12 annualized dividend and a dividend yield of 1.42%. The ex-dividend date of this dividend was Wednesday, March 27th. DiamondRock Hospitality’s dividend payout ratio (DPR) is currently 33.33%. Analyst Upgrades and Downgrades DRH has been the subject of a number of recent analyst reports. Stifel Nicolaus raised their price objective on DiamondRock Hospitality from $10.00 to $10.50 and gave the company a “buy” rating in a research report on Friday, February 23rd. Truist Financial raised their price target on DiamondRock Hospitality from $10.00 to $11.00 and gave the company a “hold” rating in a report on Thursday, March 14th. Finally, StockNews.com upgraded shares of DiamondRock Hospitality from a “sell” rating to a “hold” rating in a report on Friday, May 3rd. Four investment analysts have rated the stock with a hold rating and two have issued a buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $10.30. Read Our Latest Stock Analysis on DiamondRock Hospitality DiamondRock Hospitality Profile (Free Report) DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 36 premium quality hotels with over 9,700 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment.
