DiamondRock Hospitality (NYSE:DRH) Posts Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• DiamondRock Hospitality reported a quarterly earnings per share (EPS) of $0.35, surpassing analysts' expectations of $0.33 by $0.02, with revenue at $305.70 million during the quarter.
• The company updated its FY 2025 EPS guidance to a range of 0.960-1.060, despite a 1.2% decline in revenue compared to the same quarter last year.
• DiamondRock Hospitality's dividend payout ratio stands at 177.78%, while a recent dividend of $0.08 yielded a 420.0% return to shareholders.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) announced its quarterly earnings results on Thursday. The real estate investment trust reported $0.35 EPS for the quarter, beating analysts' consensus estimates of $0.33 by $0.02, Zacks reports. The firm had revenue of $305.70 million during the quarter, compared to the consensus estimate of $303.70 million. DiamondRock Hospitality had a net margin of 4.57% and a return on equity of 3.18%. The firm's revenue for the quarter was down 1.2% compared to the same quarter last year. During the same quarter last year, the firm earned $0.34 EPS. DiamondRock Hospitality updated its FY 2025 guidance to 0.960-1.060 EPS.

DiamondRock Hospitality Price Performance

Shares of DRH opened at $7.65 on Friday. The business's 50-day moving average is $7.81 and its two-hundred day moving average is $7.85. The company has a market capitalization of $1.58 billion, a P/E ratio of 42.52, a P/E/G ratio of 4.36 and a beta of 1.41. DiamondRock Hospitality has a fifty-two week low of $6.18 and a fifty-two week high of $10.00. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.62 and a current ratio of 1.62.

DiamondRock Hospitality Cuts Dividend

The firm also recently declared a dividend, which was paid on Friday, July 11th. Shareholders of record on Tuesday, July 1st were issued a $0.08 dividend. This represents a yield of 420.0%. The ex-dividend date of this dividend was Monday, June 30th. DiamondRock Hospitality's dividend payout ratio is presently 177.78%.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of 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 in the last quarter. United Services Automobile Association acquired a new position in DiamondRock Hospitality in the 1st quarter worth about $91,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in DiamondRock Hospitality by 5.1% during 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 purchasing an additional 5,971 shares in the last quarter. Finally, AQR Capital Management LLC boosted 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 worth $505,000 after purchasing an additional 45,146 shares in the last quarter.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on DRH. Morgan Stanley reduced their target price on shares of DiamondRock Hospitality from $9.00 to $7.00 and set an "equal weight" rating on the stock in a research note on Tuesday, April 22nd. Stifel Nicolaus raised their price target on DiamondRock Hospitality from $8.00 to $8.25 and gave the company a "hold" rating in a research note on Friday, May 2nd. Wells Fargo & Company upgraded DiamondRock Hospitality from a "strong sell" rating to a "hold" rating and upped their target price for the stock from $7.75 to $8.25 in a report on Tuesday, July 1st. Evercore ISI lowered their price target on shares of DiamondRock Hospitality from $10.00 to $9.00 and set an "in-line" rating on the stock in a report on Monday, April 28th. Finally, Bank of America upgraded DiamondRock Hospitality from an "underperform" rating to a "buy" rating and set a $9.50 target price on the stock in a research note on Wednesday, April 30th. Six analysts have rated the stock with a hold rating and one has issued a buy rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $8.50.

About DiamondRock Hospitality

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.

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