SVC 4Q normalized FFO/share 17c, est. 5.3c (2 est.)
TL;DR
Service Properties Trust reported Q4 2024 normalized FFO of $0.17 per share, beating estimates but down from $0.30 in 2023. Revenue also exceeded expectations, and the stock has outperformed the S&P 500 year-to-date, though the industry faces challenges.
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SVC 4Q normalized FFO/share 17c, est. 5.3c (2 est.)
Service Properties Trust (SVC) Reports Fourth Quarter 2024 Normalized FFO of $0.17 Per Share
Service Properties Trust (NASDAQ: SVC) reported normalized funds from operations of $0.17 per share for the fourth quarter of 2024, exceeding the Zacks Consensus Estimate of $0.15 per share. This represents a 13.33% positive surprise compared to expectations. However, the figure marks a decline from $0.30 per share in the same period of 2023.
The company also generated revenues of $456.56 million for the quarter, surpassing the Zacks Consensus Estimate by 1.21%. This reflects a modest increase from $444.05 million in Q4 2023. Over the past four quarters, SVC has exceeded revenue estimates three times but has only outperformed FFO estimates once.
Service Properties Trust's stock has gained 4.3% year-to-date, outperforming the S&P 500's 1.3% return. However, the Zacks Rank for SVC is currently #3 (Hold), indicating expectations of in-line performance with the broader market in the near term. This rating follows mixed trends in earnings estimate revisions ahead of the report.
Looking ahead, the consensus FFO estimate for the upcoming quarter stands at $0.11 per share on $429.9 million in revenues, while the full-year 2025 FFO projection is $1.14 per share on $1.89 billion in revenues. The REIT and Equity Trust - Other industry, in which SVC operates, ranks in the bottom 46% of Zacks' 250+ industries, highlighting broader sector challenges.
Management's commentary during the earnings call will be critical in assessing the sustainability of SVC's recent performance. Investors are advised to monitor revisions to future estimates, as empirical research shows a strong correlation between such changes and near-term stock movements.
(https://www.nasdaq.com/articles/service-properties-svc-q4-ffo-and-revenues-surpass-estimates): Service Properties Trust's Q4 2024 results and Zacks Consensus data.
(https://finance.yahoo.com/news/properties-svc-q4-ffo-revenues-232007296.html): Historical performance and industry analysis from Zacks Investment Research.
