Choice Hotels beats by $0.04, reports revs in-line; guides Q3 EPS in-line; guides FY16 EPS above consensus
- Reports Q2 (Jun) earnings of $0.71 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $0.67; revenues rose 4.1% year/year to $241.75 mln vs the $243.26 mln Capital IQ Consensus.
- Co issues in-line guidance for Q3, sees EPS of 'at least' $0.78, excluding non-recurring items, vs. $0.82 Capital IQ Consensus Estimate.
- Co issues upside guidance for FY16, sees EPS of $2.38-2.43, excluding non-recurring items, vs. $2.32 Capital IQ Consensus Estimate. EBITDA is expeted to be in the range of $252-256 mln.
- Net domestic unit growth for 2016 is expected to be between 2% and 3%;
- RevPAR is expected to increase between 3.5% and 4.0% for third quarter and range between 3.5% and 4.0% for full-year 2016;
- The effective royalty rate is expected to increase between 7 and 9 basis points for full-year 2016 as compared to full-year 2015