Service Properties Trust (NASDAQ:SVC) Issues Quarterly Earnings Results, Misses Estimates By $0.39 EPS

Service Properties Trust (NASDAQ:SVC) posted its quarterly earnings data on Wednesday. The real estate investment trust reported ($0.68) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.29) by ($0.39), FiscalAI reports. The company had revenue of $399.52 million for the quarter, compared to analysts’ expectations of $318.62 million. Service Properties Trust had a negative return on equity of 71.48% and a negative net margin of 29.31%.

Service Properties Trust Trading Down 12.4%

Shares of Service Properties Trust stock opened at $5.50 on Friday. The stock has a market capitalization of $712.30 million, a P/E ratio of 3.45 and a beta of 1.78. Service Properties Trust has a 52-week low of $5.37 and a 52-week high of $12.15. The company has a debt-to-equity ratio of 2.11, a quick ratio of 0.01 and a current ratio of 0.01. The stock’s 50-day simple moving average is $6.58 and its 200 day simple moving average is $8.27.

Service Properties Trust Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, November 12th. Investors of record on Monday, October 19th will be paid a $0.05 dividend. This represents a $0.20 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date is Monday, October 19th. Service Properties Trust’s payout ratio is currently -2.60%.

Key Headlines Impacting Service Properties Trust

Here are the key news stories impacting Service Properties Trust this week:

• Positive Sentiment: Third-quarter FFO was $0.34 per share, above the Zacks consensus estimate of $0.30. Revenue of about $399.5 million also exceeded the roughly $318.6 million estimate. Service Properties Q3 FFO and Revenues Beat Estimates
• Negative Sentiment: FFO was down from $1.00 per share in the year-ago quarter, a steep deterioration that may overshadow the quarterly estimate beats. The supplied results also show negative net margin and return on equity, while the company’s high debt and very low current and quick ratios point to financial risk. Service Properties Trust Reports Third-Quarter Results

Wall Street Analyst Weigh In

SVC has been the topic of a number of research analyst reports. Loop Capital set a $9.00 target price on shares of Service Properties Trust in a research note on Friday, October 2nd. Weiss Ratings lowered shares of Service Properties Trust from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Thursday, October 8th. Finally, Zacks Research raised shares of Service Properties Trust from a “strong sell” rating to a “hold” rating in a report on Wednesday, August 12th. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $12.05.

About Service Properties Trust

Service Properties Trust (NASDAQ:SVC) is a real estate investment trust that owns and invests in hospitality and service-oriented properties. The company’s portfolio has historically included hotels, extended-stay lodging properties and other real estate leased to businesses that provide essential or consumer-focused services.

Service Properties Trust generally leases its properties to hotel operators and other commercial tenants rather than managing most locations directly. Its hotel portfolio has included properties operated under a variety of well-known brands, while its service-focused properties have supported businesses such as healthcare, automotive and travel-related services.

The company’s properties are primarily located in the United States, with investments also having included select locations in Canada and Puerto Rico.