DiamondRock Hospitality (DRH) to Release Earnings on Thursday

Key Points

• DiamondRock Hospitality is expected to report its Q2 2025 earnings on August 7th, with analysts forecasting earnings of $0.32 per share and revenue of $303.70 million.
• The company has faced a decline in stock price, trading down 2.3%, and its debt-to-equity ratio stands at 0.69, indicating potential financial concerns.
• DiamondRock recently announced a dividend cut with a yield of 4.2%, as its payout ratio has surged to 177.78%, suggesting sustainability issues in dividend payments.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) is projected to issue its Q2 2025 quarterly earnings data after the market closes on Thursday, August 7th. Analysts expect the company to announce earnings of $0.32 per share and revenue of $303.70 million for the quarter.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last posted its quarterly earnings results on Thursday, May 1st. The real estate investment trust reported $0.19 earnings per share for the quarter, beating the consensus estimate of $0.17 by $0.02. DiamondRock Hospitality had a net margin of 4.57% and a return on equity of 3.18%. The company had revenue of $254.85 million during the quarter, compared to analyst estimates of $256.47 million. During the same quarter in the prior year, the business earned $0.17 earnings per share. The firm's revenue for the quarter was up .5% on a year-over-year basis. On average, analysts expect DiamondRock Hospitality to post $1 EPS for the current fiscal year and $1 EPS for the next fiscal year.

DiamondRock Hospitality Stock Performance

NYSE DRH traded down $0.15 during trading hours on Friday, reaching $7.57. 2,650,246 shares of the company were exchanged, compared to its average volume of 2,638,403. DiamondRock Hospitality has a 1 year low of $6.18 and a 1 year high of $10.00. The business's 50 day simple moving average is $7.80 and its 200-day simple moving average is $7.88. The company has a quick ratio of 1.62, a current ratio of 1.62 and a debt-to-equity ratio of 0.69. The stock has a market capitalization of $1.56 billion, a P/E ratio of 42.06, a P/E/G ratio of 4.35 and a beta of 1.41.

DiamondRock Hospitality Cuts Dividend

The business also recently disclosed a dividend, which was paid on Friday, July 11th. Investors of record on Tuesday, July 1st were issued a dividend of $0.08 per share. This represents a yield of 420.0%. The ex-dividend date was Monday, June 30th. DiamondRock Hospitality's dividend payout ratio (DPR) is 177.78%.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on DRH. Wells Fargo & Company upgraded shares of DiamondRock Hospitality from a "strong sell" rating to a "hold" rating and lifted their target price for the stock from $7.75 to $8.25 in a research note on Tuesday, July 1st. Morgan Stanley reduced their target price on shares of DiamondRock Hospitality from $9.00 to $7.00 and set an "equal weight" rating for the company in a research note on Tuesday, April 22nd. Stifel Nicolaus lifted their target price on shares of DiamondRock Hospitality from $8.00 to $8.25 and gave the stock a "hold" rating in a research note on Friday, May 2nd. Evercore ISI reduced their target price on shares of DiamondRock Hospitality from $10.00 to $9.00 and set an "in-line" rating for the company in a research note on Monday, April 28th. Finally, Truist Financial reduced their target price on shares of DiamondRock Hospitality from $10.00 to $9.00 and set a "hold" rating for the company in a research note on Friday, May 30th. Six research analysts have rated the stock with a hold rating and two have assigned a buy rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $8.71.

Institutional Investors Weigh In On DiamondRock Hospitality

A number of hedge funds have recently made changes to their positions in the business. United Services Automobile Association bought a new position in shares of DiamondRock Hospitality during the first quarter valued at approximately $91,000. AQR Capital Management LLC increased its position in DiamondRock Hospitality by 223.2% during the first quarter. AQR Capital Management LLC now owns 65,376 shares of the real estate investment trust's stock valued at $505,000 after acquiring an additional 45,146 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of DiamondRock Hospitality by 5.1% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 123,672 shares of the real estate investment trust's stock worth $955,000 after buying an additional 5,971 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in DiamondRock Hospitality by 3.8% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,327,841 shares of the real estate investment trust's stock worth $10,251,000 after acquiring an additional 48,558 shares during the period.

DiamondRock Hospitality Company Profile

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.