DiamondRock Hospitality (NYSE:DRH) Releases FY 2025 Earnings Guidance

Key Points

• DiamondRock Hospitality updated its FY 2025 earnings guidance, projecting earnings per share between 0.960 and 1.060, slightly below the consensus estimate of 1.004.
• Truist Financial and Evercore ISI both lowered their price targets for DiamondRock shares to $9.00, while Morgan Stanley reduced theirs to $7.00, indicating a cautious outlook from analysts.
• The company reported a 1.2% decline in quarterly revenue compared to the previous year, alongside a net margin of 4.57% and a return on equity of 3.18%.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) issued an update on its FY 2025 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 0.960-1.060 for the period, compared to the consensus estimate of 1.004. The company issued revenue guidance of -.

DiamondRock Hospitality Price Performance

DRH stock traded down $0.13 on Monday, reaching $7.46. The company had a trading volume of 405,334 shares, compared to its average volume of 2,649,903. DiamondRock Hospitality has a 1 year low of $6.18 and a 1 year high of $10.00. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.62 and a current ratio of 1.30. The company's fifty day moving average is $7.81 and its 200 day moving average is $7.83. The company has a market cap of $1.54 billion, a P/E ratio of 28.75, a PEG ratio of 4.36 and a beta of 1.41.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last posted its earnings results on Thursday, August 7th. The real estate investment trust reported $0.35 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.33 by $0.02. DiamondRock Hospitality had a return on equity of 4.23% and a net margin of 6.04%. The firm had revenue of $305.70 million for the quarter, compared to analyst estimates of $303.70 million. During the same quarter in the prior year, the company earned $0.34 EPS. DiamondRock Hospitality's revenue was down 1.2% on a year-over-year basis. On average, research analysts forecast that DiamondRock Hospitality will post 0.96 earnings per share for the current year.

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 paid a dividend of $0.08 per share. This represents a dividend yield of 420.0%. The ex-dividend date of this dividend was Monday, June 30th. DiamondRock Hospitality's dividend payout ratio is currently 177.78%.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on DRH. Stifel Nicolaus increased their price target on DiamondRock Hospitality from $8.00 to $8.25 and gave the stock 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 lifted their price target for the company from $7.75 to $8.25 in a report on Tuesday, July 1st. Morgan Stanley lowered their price target on DiamondRock Hospitality from $9.00 to $7.00 and set an "equal weight" rating for the company in a report on Tuesday, April 22nd. Evercore ISI lowered their price target on DiamondRock Hospitality from $10.00 to $9.00 and set an "in-line" rating for the company 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 price target for the company in a report on Wednesday, April 30th. Six equities research analysts have rated the stock with a hold rating and one has issued a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $8.50.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. United Services Automobile Association purchased a new position in shares of DiamondRock Hospitality in the 1st quarter worth $91,000. Creative Planning acquired a new stake in DiamondRock Hospitality in the 2nd quarter valued at $99,000. AQR Capital Management LLC increased its holdings in DiamondRock Hospitality by 223.2% in the 1st quarter. AQR Capital Management LLC now owns 65,376 shares of the real estate investment trust's stock valued at $505,000 after purchasing an additional 45,146 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in DiamondRock Hospitality by 5.1% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 123,672 shares of the real estate investment trust's stock valued at $955,000 after purchasing an additional 5,971 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in DiamondRock Hospitality by 3.8% in 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 valued at $10,251,000 after purchasing an additional 48,558 shares in the last quarter.

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.