DiamondRock Hospitality (NYSE:DRH) Updates 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 guidance of 0.960-1.060 for the period, compared to the consensus earnings per share estimate of 1.004. The company issued revenue guidance of -.

Wall Street Analysts Forecast Growth

Several brokerages have commented on DRH. Truist Financial cut their price target on shares of DiamondRock Hospitality from $10.00 to $9.00 and set a "hold" rating on the stock in a research report on Friday, May 30th. Evercore ISI decreased their target price on shares of DiamondRock Hospitality from $10.00 to $9.00 and set an "in-line" rating on the stock in a research report on Monday, April 28th. Morgan Stanley cut their price target on shares of DiamondRock Hospitality from $9.00 to $7.00 and set an "equal weight" rating for the company in a report on Tuesday, April 22nd. Bank of America raised shares of DiamondRock Hospitality from an "underperform" rating to a "buy" rating and set a $9.50 price objective for the company in a research note on Wednesday, April 30th. Finally, Stifel Nicolaus increased their price objective on shares of DiamondRock Hospitality from $8.00 to $8.25 and gave the company a "hold" rating in a research note on Friday, May 2nd. Six analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $8.50.

DiamondRock Hospitality Stock Up 1.0%

NYSE:DRH traded up $0.07 during mid-day trading on Thursday, reaching $7.65. The company's stock had a trading volume of 2,281,153 shares, compared to its average volume of 2,896,160. DiamondRock Hospitality has a 1 year low of $6.18 and a 1 year high of $10.00. The stock has a fifty day moving average of $7.81 and a 200-day moving average of $7.85. The firm has a market capitalization of $1.58 billion, a PE ratio of 42.52, a price-to-earnings-growth ratio of 4.36 and a beta of 1.41. The company has a quick ratio of 1.62, a current ratio of 1.62 and a debt-to-equity ratio of 0.69.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The real estate investment trust reported $0.35 earnings per share for the quarter, topping the consensus estimate of $0.33 by $0.02. DiamondRock Hospitality had a net margin of 4.57% and a return on equity of 3.18%. During the same period in the prior year, the firm posted $0.34 EPS. The company's quarterly revenue was down 1.2% compared to the same quarter last year. Equities 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. Investors 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 177.78%.

Institutional Investors Weigh In On DiamondRock Hospitality

Several hedge funds have recently modified their holdings of the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of 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. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake 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 purchasing an additional 5,971 shares in the last quarter. AQR Capital Management LLC grew its stake in shares of DiamondRock Hospitality by 223.2% in 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. Finally, United Services Automobile Association acquired a new stake in shares of DiamondRock Hospitality in the first quarter valued at $91,000.

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.

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