Earnings: Host, Gannett
From the Associated Press
*Host Hotels & Resorts of Bethesda its second-quarter funds from operations rose 16.7 percent, to 56 per share from 48 cents per share, on strong room rates, beating Wall Street expectations. Profit at the largest U.S. hotel real estate investment trust rose 28 percent, to $199 million (35 cents a share) from $152 million (27 cents). Revenue increased by 2.5 percent, to $1.42 billion. Revenue per available room, an industry benchmark known as revpar, increased to $158.91 from $156.28.
Host also cut its full-year outlook and offered third-quarter guidance below Wall Street expectations. The company now forecasts funds from operations of 27 cents to 29 cents per share for the third quarter and $1.75 to $1.85 per share for the full year. In April, the company had said it expected annual FFO between $1.88 and $1.98 per share.
The full-year outlook, as well as its third-quarter forecast, assumes a same-hotel revenue per available room decline of 2 4 percent for the third quarter. Host Hotels expects it to range from a decrease of 1 percent to an increase of 1 percent for the full year.
*Gannett announced preliminary second-quarter results today, saying profit dropped 36 percent, to $233 million ($1.02) from $366 million ($1.56). Revenue at the nation's largest newspaper publisher fell 10 percent to $1.72 billion in the quarter.
The McLean company announced last month that it plans to take an accounting write-down of $2.5 billion to $3 billion to reflect the company's declining market value. In a press release issued Wednesday, the company said the exact amount has not yet been determined, but narrowed the range slightly, to $2.6 billion to $2.9 billion. The write-down will be included in the second quarter in an amended statement to be filed before Aug. 8.
July 16, 2008; 1:30 PM ET
Previous: Early Briefing: Skepticism on Aid for Fannie, Freddie | Next: Roundup: Summize, Capital One, Media General, Gladstone Capital
Please email us to report offensive comments.
The comments to this entry are closed.