H World Group Shares Dip as Q2 Earnings and Sales Fall Short of Expectations
Portfolio Pulse from Nabaparna Bhattacharya
H World Group Limited (NASDAQ:HTHT) shares fell after Q2 earnings and sales missed expectations. The company reported adjusted earnings per ADS of 53 cents, below the expected 74 cents, and sales of $846 million, missing the $956.48 million forecast. Despite a year-over-year revenue increase of 11.2%, the stock dropped 4.39% to $27.75. The company anticipates modest revenue growth in Q3 and has increased its hotel opening forecast for 2024.
August 20, 2024 | 4:26 pm
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H World Group's Q2 earnings and sales fell short of expectations, leading to a 4.39% drop in share price. The company reported adjusted earnings per ADS of 53 cents, missing the consensus of 74 cents, and sales of $846 million, below the expected $956.48 million. Despite a year-over-year revenue increase of 11.2%, the market reacted negatively. The company anticipates modest revenue growth in Q3 and has increased its hotel opening forecast for 2024.
The company's Q2 earnings and sales missed analyst expectations, which typically leads to a negative market reaction, as seen with the 4.39% drop in share price. Despite positive year-over-year revenue growth, the shortfall in expected earnings and sales figures is a significant factor for investors. The company's outlook for modest revenue growth in Q3 and increased hotel openings in 2024 may provide some long-term optimism, but the immediate impact is negative.
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