Insights Ahead: Sunstone Hotel Invts's Quarterly Earnings

Sunstone Hotel Invts (NYSE:SHO) is preparing to release its quarterly earnings on Wednesday, 2025-08-06. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Sunstone Hotel Invts to report an earnings per share (EPS) of $0.15.

Investors in Sunstone Hotel Invts are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Historical Earnings Performance

In the previous earnings release, the company beat EPS by $0.03, leading to a 1.57% drop in the share price the following trading session.

Here's a look at Sunstone Hotel Invts's past performance and the resulting price change:

Sunstone Hotel Invts Share Price Analysis

Shares of Sunstone Hotel Invts were trading at $8.75 as of August 04. Over the last 52-week period, shares are down 8.19%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.

Analysts' Take on Sunstone Hotel Invts

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Sunstone Hotel Invts.

Analysts have given Sunstone Hotel Invts a total of 4 ratings, with the consensus rating being Outperform. The average one-year price target is $9.38, indicating a potential 7.2% upside.

Comparing Ratings Among Industry Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Diamondrock Hospitality, Park Hotels & Resorts and Xenia Hotels & Resorts, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Diamondrock Hospitality, with an average 1-year price target of $8.62, suggesting a potential 1.49% downside.
• Analysts currently favor an Neutral trajectory for Park Hotels & Resorts, with an average 1-year price target of $11.25, suggesting a potential 28.57% upside.
• Analysts currently favor an Outperform trajectory for Xenia Hotels & Resorts, with an average 1-year price target of $14.0, suggesting a potential 60.0% upside.

Snapshot: Peer Analysis

The peer analysis summary presents essential metrics for Diamondrock Hospitality, Park Hotels & Resorts and Xenia Hotels & Resorts, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Sunstone Hotel Invts ranks highest in Revenue Growth and Gross Profit among its peers. It ranks lowest in Return on Equity.

Unveiling the Story Behind Sunstone Hotel Invts

Sunstone Hotel Investors Inc is a real estate investment trust that acquires, owns, manages, and renovates the full-service hotel and select-service hotel properties across various states in the United States. Its firm's portfolio consists upper upscale and luxury hotels located in convention, resort destination and urban markets. Its majority of the hotels operate under a brand owned by Marriott, Hilton, Hyatt, Four Seasons or Montage. It operates geographically in Califiornia which generates the majority of its revenue; Florida; and Hawaii. The company's sole source of income is hotel revenue from its hotel ownership segment.

Sunstone Hotel Invts: Delving into Financials

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Sunstone Hotel Invts's remarkable performance in 3 months is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 7.78%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Real Estate sector.

Net Margin: Sunstone Hotel Invts's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 0.54%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Sunstone Hotel Invts's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 0.07%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.04%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.47, Sunstone Hotel Invts adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Sunstone Hotel Invts visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.