Zacks Research Has Bearish Estimate for CHH Q3 Earnings

Choice Hotels International, Inc. (NYSE:CHH) – Research analysts at Zacks Research dropped their Q3 2026 EPS estimates for Choice Hotels International in a research report issued on Wednesday, August 26th. Zacks Research analyst Team now forecasts that the company will post earnings per share of $2.24 for the quarter, down from their prior forecast of $2.35. The consensus estimate for Choice Hotels International’s current full-year earnings is $6.99 per share. Zacks Research also issued estimates for Choice Hotels International’s Q4 2026 earnings at $1.60 EPS, FY2026 earnings at $6.93 EPS, Q1 2027 earnings at $1.12 EPS, Q2 2027 earnings at $1.93 EPS, Q3 2027 earnings at $2.27 EPS, Q4 2027 earnings at $1.75 EPS, FY2027 earnings at $7.06 EPS, Q1 2028 earnings at $1.24 EPS, Q2 2028 earnings at $2.12 EPS and FY2028 earnings at $7.60 EPS.

Choice Hotels International (NYSE:CHH) last announced its earnings results on Wednesday, August 5th. The company reported $2.02 EPS for the quarter, topping the consensus estimate of $1.97 by $0.05. The business had revenue of $440.76 million during the quarter, compared to analysts’ expectations of $436.48 million. Choice Hotels International had a net margin of 20.28% and a return on equity of 205.69%. The firm’s revenue was up 3.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.92 earnings per share. Choice Hotels International has set its FY 2026 guidance at 6.860-7.100 EPS.

Other equities analysts have also recently issued research reports about the company. Truist Financial decreased their price objective on Choice Hotels International from $129.00 to $128.00 and set a “buy” rating for the company in a report on Tuesday, May 26th. Weiss Ratings reiterated a “hold (c)” rating on shares of Choice Hotels International in a report on Tuesday, July 7th. Robert W. Baird set a $128.00 price target on Choice Hotels International in a research note on Monday, May 11th. Morgan Stanley upped their price objective on Choice Hotels International from $86.00 to $91.00 and gave the stock an “underweight” rating in a research note on Tuesday, August 18th. Finally, Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $124.00 price objective on shares of Choice Hotels International in a report on Thursday, August 6th. Two equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Reduce” and an average target price of $112.75.

Choice Hotels International Stock Down 0.4%

Shares of CHH stock opened at $109.84 on Thursday. The firm’s fifty day moving average price is $109.76 and its two-hundred day moving average price is $108.57. Choice Hotels International has a 1 year low of $84.04 and a 1 year high of $123.82. The company has a current ratio of 0.93, a quick ratio of 0.93 and a debt-to-equity ratio of 14.08. The firm has a market capitalization of $4.94 billion, a P/E ratio of 15.51, a PEG ratio of 4.47 and a beta of 0.67.

Insider Transactions at Choice Hotels International

In other news, CFO Scott E. Oaksmith sold 2,000 shares of the business’s stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $110.00, for a total transaction of $220,000.00. Following the completion of the sale, the chief financial officer owned 35,172 shares in the company, valued at $3,868,920. The trade was a 5.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director William L. Jews sold 5,057 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $106.98, for a total value of $540,997.86. Following the sale, the director owned 23,987 shares of the company’s stock, valued at approximately $2,566,129.26. This represents a 17.41% decrease in their position. The disclosure for this sale is available in the SEC filing. 23.87% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Choice Hotels International

A number of institutional investors have recently modified their holdings of CHH. California State Teachers Retirement System grew its stake in shares of Choice Hotels International by 9,525.7% in the second quarter. California State Teachers Retirement System now owns 3,184,377 shares of the company’s stock valued at $351,141,000 after acquiring an additional 3,151,295 shares in the last quarter. Bamco Inc. NY raised its position in shares of Choice Hotels International by 37.8% in the fourth quarter. Bamco Inc. NY now owns 7,386,575 shares of the company’s stock valued at $703,645,000 after buying an additional 2,026,679 shares in the last quarter. Goldman Sachs Group Inc. boosted its stake in shares of Choice Hotels International by 151.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 512,628 shares of the company’s stock valued at $48,833,000 after buying an additional 308,771 shares during the period. Norges Bank bought a new stake in shares of Choice Hotels International in the fourth quarter valued at approximately $28,910,000. Finally, Wellington Management Group LLP grew its position in Choice Hotels International by 55.1% during the fourth quarter. Wellington Management Group LLP now owns 574,630 shares of the company’s stock worth $54,739,000 after buying an additional 204,146 shares in the last quarter. Institutional investors own 65.57% of the company’s stock.

Key Headlines Impacting Choice Hotels International

Here are the key news stories impacting Choice Hotels International this week:

• Positive Sentiment: Choice Hotels’ most recently reported quarter exceeded expectations, with earnings of $2.02 per share versus the $1.97 consensus estimate and revenue of $440.76 million versus expectations of $436.48 million. Revenue increased 3.4% year over year, providing a constructive operating backdrop.
• Neutral Sentiment: Zacks Research projects 2026 earnings of $6.93 per share, 2027 earnings of $7.06, and 2028 earnings of $7.60. The 2026 estimate is close to the broader $6.99 consensus, while the forecasts imply continued earnings growth over the next two years.
• Negative Sentiment: Zacks cut its 2026 EPS estimate to $6.93 from $7.08, its 2027 estimate to $7.06 from $7.56, and its 2028 estimate to $7.60 from $8.10. The firm also lowered estimates for Q3 and Q4 2026 and every reported quarter in 2027 and 2028, including Q1 2027 to $1.12 from $1.22 and Q2 2028 to $2.12 from $2.27.
• Negative Sentiment: The largest reduction was to full-year 2028 expectations, indicating that analysts see less long-term earnings power than previously anticipated. With the stock trading near its 50-day and 200-day moving averages, the estimate cuts may weigh on investor sentiment despite the company’s recent earnings beat.

Choice Hotels International Company Profile

Choice Hotels International, Inc is a hospitality franchisor specializing in the development and support of lodging brands across the economy, midscale and upscale segments. Through a network of franchisees, Choice Hotels supplies proprietary reservation and distribution systems, comprehensive marketing programs, and operational support services. The company’s core activities include brand management, franchise development, and technology-driven revenue optimization tools designed to enhance guest acquisition and retention for its partners.

Founded in 1939 as Quality Courts United, the company rebranded to Choice Hotels International in 1982 to reflect its expanding brand portfolio and global ambitions.