Zacks Research Issues Pessimistic Forecast for CHH Earnings

Key Points

• Zacks Research lowered its Q2 2026 EPS forecast for Choice Hotels International to $1.93 from $1.95, signaling a slightly more cautious view on near-term earnings.
• The broader analyst outlook remains weak, with a consensus rating of “Reduce” and an average price target of $111.67; only 2 analysts rate the stock a Buy, while 12 rate it Hold or Sell.
• Choice Hotels recently missed earnings expectations, reporting $1.07 EPS versus the $1.35 estimate, even though revenue came in above forecasts at $340.58 million.

Choice Hotels International, Inc. (NYSE:CHH - Free Report) - Investment analysts at Zacks Research decreased their Q2 2026 earnings estimates for Choice Hotels International in a research note issued to investors on Thursday, May 21st. Zacks Research analyst Team now forecasts that the company will earn $1.93 per share for the quarter, down from their previous forecast of $1.95. The consensus estimate for Choice Hotels International's current full-year earnings is $7.13 per share. Zacks Research also issued estimates for Choice Hotels International's Q4 2026 earnings at $1.73 EPS, FY2026 earnings at $7.08 EPS, Q1 2027 earnings at $1.22 EPS, Q2 2027 earnings at $2.08 EPS, FY2027 earnings at $7.56 EPS, Q1 2028 earnings at $1.34 EPS and FY2028 earnings at $8.10 EPS.

CHH has been the subject of a number of other reports. The Goldman Sachs Group upped their target price on shares of Choice Hotels International from $90.00 to $100.00 and gave the company a "neutral" rating in a report on Tuesday, February 3rd. Truist Financial decreased their price target on Choice Hotels International from $129.00 to $128.00 and set a "buy" rating for the company in a report on Tuesday. Weiss Ratings raised shares of Choice Hotels International from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, February 9th. Morgan Stanley lowered their target price on shares of Choice Hotels International from $87.00 to $86.00 and set an "underweight" rating on the stock in a report on Tuesday, May 12th. Finally, Wells Fargo & Company increased their price target on shares of Choice Hotels International from $91.00 to $110.00 and gave the stock an "underweight" rating in a report on Friday, February 20th. Two analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Reduce" and an average price target of $111.67.

Choice Hotels International Price Performance

CHH stock opened at $113.57 on Wednesday. The company has a market capitalization of $5.17 billion, a P/E ratio of 15.31, a PEG ratio of 2.08 and a beta of 0.65. The business has a 50 day simple moving average of $108.35 and a 200-day simple moving average of $102.72. The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 14.58. Choice Hotels International has a twelve month low of $84.04 and a twelve month high of $136.45.

Choice Hotels International (NYSE:CHH - Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported $1.07 earnings per share for the quarter, missing the consensus estimate of $1.35 by ($0.28). The firm had revenue of $340.58 million during the quarter, compared to analysts' expectations of $333.48 million. Choice Hotels International had a net margin of 21.55% and a return on equity of 281.98%. The firm's revenue for the quarter was up 2.3% on a year-over-year basis. During the same period in the previous year, the firm posted $1.34 earnings per share. Choice Hotels International has set its FY 2026 guidance at 6.920-7.140 EPS.

Choice Hotels International Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st will be given a $0.2875 dividend. The ex-dividend date is Wednesday, July 1st. This represents a $1.15 dividend on an annualized basis and a dividend yield of 1.0%. Choice Hotels International's dividend payout ratio (DPR) is currently 15.50%.

Insider Activity

In related news, CFO Scott E. Oaksmith sold 1,603 shares of the business's stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $100.00, for a total value of $160,300.00. Following the sale, the chief financial officer directly owned 37,172 shares in the company, valued at $3,717,200. The trade was a 4.13% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 24.02% of the stock is owned by company insiders.

Institutional Trading of Choice Hotels International

Several large investors have recently modified their holdings of the business. Eurizon Capital SGR S.p.A. acquired a new position in shares of Choice Hotels International during the 4th quarter worth approximately $27,000. Eagle Bay Advisors LLC acquired a new position in shares of Choice Hotels International in the fourth quarter worth $28,000. Fifth Third Bancorp lifted its position in shares of Choice Hotels International by 77.4% in the fourth quarter. Fifth Third Bancorp now owns 392 shares of the company's stock valued at $37,000 after acquiring an additional 171 shares in the last quarter. UMB Bank n.a. lifted its position in shares of Choice Hotels International by 6,416.7% in the fourth quarter. UMB Bank n.a. now owns 391 shares of the company's stock valued at $37,000 after acquiring an additional 385 shares in the last quarter. Finally, Quarry LP acquired a new position in Choice Hotels International in the 3rd quarter valued at $38,000. 65.57% of the stock is currently owned by institutional investors and hedge funds.

Choice Hotels International Company Profile

Choice Hotels International, Inc is a hospitality franchisor specializing in the development and support of lodging brands across the economy, midscale and upscale segments. Through a network of franchisees, Choice Hotels supplies proprietary reservation and distribution systems, comprehensive marketing programs, and operational support services. The company's core activities include brand management, franchise development, and technology-driven revenue optimization tools designed to enhance guest acquisition and retention for its partners.

Founded in 1939 as Quality Courts United, the company rebranded to Choice Hotels International in 1982 to reflect its expanding brand portfolio and global ambitions.

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