Whitbread (LON:WTB) Posts Quarterly Earnings Results

Whitbread (LON:WTB) announced its quarterly earnings data on Tuesday. The company reported GBX 125.10 EPS for the quarter, Digital Look Earnings reports. Whitbread had a net margin of 1.96% and a return on equity of 1.85%.

Here are the key takeaways from Whitbread’s conference call:

• Strong trading momentum continued: UK accommodation sales rose 3% in H1, with current trading up 4.5% and RevPAR up 3.2%, while Germany delivered double-digit H1 accommodation sales growth and current RevPAR growth of 10%.
• Whitbread reported £39 million of efficiencies in H1, keeping UK operating costs flat despite inflation and higher business rates; management remains confident of achieving its £60 million full-year target.
• The company reiterated its full-year outlook and five-year plan, targeting higher margins, cash flow and returns through the Accelerating Growth Plan, selective room expansion and investment projects expected to generate at least 15% returns.
• Whitbread remains confident of delivering £450 million–£500 million of disposal proceeds, but acknowledged elevated gilt yields and said it would not complete transactions unless they offered an appropriate balance of shareholder value.
• Management urged shareholders to reject Corvex’s board nominee, arguing that an activist-led strategic review would distract from execution; cost pressures also remain, with AGP-related disruption and lease costs expected to be more heavily weighted toward the second half.

Whitbread Price Performance

Shares of WTB stock traded up GBX 76 during mid-day trading on Thursday, reaching GBX 2,616. The stock had a trading volume of 1,104,646 shares, compared to its average volume of 12,016,993. Whitbread has a 12-month low of GBX 2,098 and a 12-month high of GBX 3,175. The company has a market cap of £4.37 billion, a P/E ratio of 21.37, a price-to-earnings-growth ratio of -3.09 and a beta of 0.65. The business has a 50-day simple moving average of GBX 2,419.64 and a 200 day simple moving average of GBX 2,405.04. The company has a current ratio of 0.33, a quick ratio of 1.74 and a debt-to-equity ratio of 179.41.

Analysts Set New Price Targets

Several research analysts have weighed in on the stock. Jefferies Financial Group upped their target price on shares of Whitbread from GBX 2,050 to GBX 2,250 and gave the stock a “hold” rating in a research report on Wednesday, August 26th. Berenberg Bank reiterated a “hold” rating and set a GBX 2,280 price target on shares of Whitbread in a research report on Monday, June 22nd. Citigroup boosted their price target on Whitbread from GBX 3,100 to GBX 3,300 and gave the stock a “buy” rating in a research note on Friday, August 21st. Finally, Shore Capital Group reissued a “buy” rating and set a GBX 3,700 price target on shares of Whitbread in a research note on Thursday, June 18th. Five investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, Whitbread presently has a consensus rating of “Moderate Buy” and a consensus price target of GBX 2,970.56.

Insider Activity

In other Whitbread news, insider Shelley Roberts acquired 485 shares of the stock in a transaction that occurred on Tuesday, August 11th. The shares were purchased at an average cost of GBX 2,456 per share, with a total value of £11,911.60. 0.42% of the stock is owned by company insiders.

About Whitbread

Whitbread is the owner of Premier Inn, the UK’s biggest
hotel brand, with 86,000 rooms in over 850 hotels
and a growing presence in Germany with 10,500 rooms in
59 hotels, offering quality accommodation at affordable
prices in great locations.

People are at the heart of our business. We employ over
38,000 team members in over 900 Premier Inn hotels
across the UK and Germany.