DiamondRock Hospitality pany-DiamondRock Hospitality (DRH) Surpasses Q1 FFO Estimates

Core Viewpoint - DiamondRock Hospitality (DRH) reported quarterly funds from operations (FFO) of $0.19 per share, exceeding the Zacks Consensus Estimate of$ 0.17 per share, and up from $0.17 per share a year ago [1][2]. Financial Performance - The quarterly FFO surprise was 11.76%, and the company had a previous quarter surprise of 14.29% with an actual FFO of$ 0.24 per share against an expected $0.21 [2]. - Revenues for the quarter ended March 2025 were$ 254.85 million, missing the Zacks Consensus Estimate by 2.01%, and down from $256.42 million year-over-year [3]. - Over the last four quarters, the company has surpassed consensus FFO estimates three times and revenue estimates two times [2][3]. Stock Performance and Outlook - DiamondRock Hospitality shares have declined approximately 18.7% since the beginning of the year, compared to a 5.3% decline in the S&P 500 [4]. - The future stock price movement will largely depend on management's commentary during the earnings call and the company's FFO outlook [4][5]. Estimate Revisions and Industry Context - The estimate revisions trend for DiamondRock Hospitality is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [7]. - The current consensus FFO estimate for the upcoming quarter is$ 0.33 on revenues of $309.56 million, and for the current fiscal year, it is$ 0.98 on revenues of $1.14 billion [8]. - The REIT and Equity Trust - Other industry is ranked in the bottom 35% of over 250 Zacks industries, suggesting potential challenges for stock performance [9].