Target Hospitality (TH) Q4 Earnings: What To Expect

Target Hospitality (TH) Q4 Earnings: What To Expect

TH Cover Image
Target Hospitality (TH) Q4 Earnings: What To Expect

Workforce housing company Target Hospitality (NASDAQ:TH) will be reporting results tomorrow before market open. Here's what to expect.

Last quarter Target Hospitality reported revenues of $145.9 million, down 8.5% year on year, beating analyst revenue expectations by 3.7%. It was a very strong quarter for the company, with full-year revenue guidance exceeding analysts' expectations and a decent beat of analysts' revenue estimates.

Is Target Hospitality buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Target Hospitality's revenue to decline 22.6% year on year to $118 million, a further deceleration on the 86.6% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.26 per share.

Target Hospitality Total Revenue
Target Hospitality Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 4.9%.

Looking at Target Hospitality's peers in the hotels, resorts and cruise lines segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Hilton Grand Vacations delivered top-line growth of 2.7% year on year, missing analyst estimates by 0.3% and Norwegian Cruise Line reported revenues up 30.8% year on year, exceeding estimates by 1.2%. Hilton Grand Vacations traded flat on the results, Norwegian Cruise Line was up 6.1%.

Read our full analysis of Hilton Grand Vacations's results here and Norwegian Cruise Line's results here.

Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, and while some of the hotels, resorts and cruise lines stocks have fared somewhat better, they have not been spared, with share price declining 3% over the last month. Target Hospitality is down 7.7% during the same time, and is heading into the earnings with analyst price target of $14, compared to share price of $8.72.

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