Estimates: EPS to jump 161% to 73 cents, on revenue of $344.5 million, up 31%, according to Yahoo Finance. Estimates have been adjusted upward over the past few months.
Results: EPS of 48 cents on revenue of $340.4 million. Revenue per available room for all hotels in operation grew 15%. The occupancy rate edged up to 86% from 84.7% a year ago.
Outlook: Q1 revenue growth of 27%-29%, with the midpoint just above consensus estimates for 27.2%, and full-year revenue growth of 16%-19%, below estimates for 25.4%.
Stock: China Lodging tanked 6.3% after hours. Shares closed down 4.6% at 147.35 on the stock market today, below their 50-day moving average after falling as low as 146.29 intraday. The stock had been working on a 160.90 entry point from seven week cup-with-handle base.
China Lodging has been finding support at the still-rising 50-day line this month, but it’s not a great sign when the handle has to fight to hold that line. More worrisome is that the stock in a fourth-stage base. Late-stage bases can work, but they are definitely riskier. Also, the relative strength line, which tracks the stock’s performance vs. the S&P 500 index, has been struggling recently. The RS line is the blue in the chart below.
China Lodging Group stock recently gave back decent gains after clearing a 142.90 buy point in a nine-week cup without handle at the end of December. After reaching a high of 166.19, it then went into a 34-day period of consolidation,
The company, known as the Huazhu Hotels Group in China, has enjoyed profit gains of 71%, 10%, 40%, 74%, 19% and 58% in the prior six quarters.
The company has a mix of brands, with the upscale Joya and Manxin, midmarket JI and Starway and economy Hanting and Hi Inn.
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