In a robust display of market confidence, Choice Hotels International Inc . (NYSE:CHH) stock has soared to a 52-week high, reaching a price level of $145.53 USD. This milestone underscores a significant period of growth for the company, reflecting a substantial 1-year change with an impressive 20.57% increase. Investors have shown their optimism in the company's strategic direction and its ability to expand its footprint in the competitive hospitality industry. The 52-week high represents a pivotal moment for Choice Hotels, as it continues to navigate the challenges and opportunities of the evolving market landscape.
In other recent news, Choice Hotels International reported strong third-quarter earnings, exceeding analyst expectations. The company reported an adjusted earnings per share of $2.23, a 23% increase from the same period last year, and above the predicted $1.92. Total revenues also achieved a quarterly record of $428 million, marking a 1% increase year-over-year.
Choice Hotels' net income rose by 15% to $105.7 million for the quarter, and adjusted EBITDA increased by 14% to a record $177.6 million. The company's global hotel pipeline saw significant growth, expanding by 11% year-over-year to over 110,000 rooms as of September 30.
Furthermore, Choice Hotels raised its full-year 2024 guidance for earnings per share to between $6.70 and $6.87, surpassing the analyst consensus of $6.49. The company also increased its outlook for net income, adjusted EBITDA, and RevPAR growth. As a part of its recent developments, Choice Hotels has repurchased 2.9 million shares for $352.9 million year-to-date through September 30.
InvestingPro Insights
Choice Hotels International Inc.'s recent achievement of a 52-week high is further supported by several key financial metrics and insights from InvestingPro. The company's market capitalization stands at a robust $6.52 billion, reflecting its significant presence in the hospitality industry. Choice Hotels boasts an impressive gross profit margin of 90.13% for the last twelve months as of Q2 2024, demonstrating its ability to maintain high profitability in its operations.
An InvestingPro Tip highlights that Choice Hotels has maintained dividend payments for 21 consecutive years, showcasing its commitment to shareholder returns and financial stability. This consistent dividend policy aligns well with the company's strong market performance and investor confidence reflected in the stock's recent high.
Another notable InvestingPro Tip reveals that management has been aggressively buying back shares, which often signals confidence in the company's future prospects and can contribute to enhancing shareholder value. This strategy may be a contributing factor to the stock's impressive performance.
It's worth noting that Choice Hotels is trading near its 52-week high, with its current price at 96.57% of that peak. This aligns with the article's focus on the stock's recent surge. Additionally, the company's P/E ratio (adjusted) stands at 23.05, indicating that investors are willing to pay a premium for the company's earnings, possibly due to its strong market position and growth prospects.
For investors seeking more comprehensive analysis, InvestingPro offers 7 additional tips for Choice Hotels International Inc., providing a deeper understanding of the company's financial health and market position.
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