Whitbread (LON:WTB) Releases Earnings Results

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

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 Stock Up 1.0%

LON:WTB traded up GBX 25 during mid-day trading on Friday, hitting GBX 2,611. 1,449,285 shares of the company’s stock traded hands, compared to its average volume of 11,963,264. The company has a market capitalization of £4.36 billion, a P/E ratio of 21.33, a P/E/G ratio of -3.09 and a beta of 0.65. The company has a debt-to-equity ratio of 179.41, a quick ratio of 1.74 and a current ratio of 0.33. The company has a fifty day moving average of GBX 2,422.96 and a 200 day moving average of GBX 2,408.91. Whitbread has a twelve month low of GBX 2,098 and a twelve month high of GBX 3,175.

Analyst Upgrades and Downgrades

WTB has been the topic of a number of research reports. Jefferies Financial Group raised their price target on Whitbread from GBX 2,050 to GBX 2,250 and gave the stock a “hold” rating in a research note on Wednesday, August 26th. Citigroup raised their price objective on shares of Whitbread from GBX 3,100 to GBX 3,300 and gave the company a “buy” rating in a research report on Friday, August 21st. Shore Capital Group reissued a “buy” rating and issued a GBX 3,700 price target on shares of Whitbread in a report on Thursday, June 18th. Finally, Berenberg Bank reissued a “hold” rating and set a GBX 2,280 price objective on shares of Whitbread in a report on Monday, June 22nd. Four 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.com, Whitbread presently has an average rating of “Moderate Buy” and a consensus price target of GBX 2,904.38.

Insider Buying and Selling at Whitbread

In other Whitbread news, insider Shelley Roberts bought 485 shares of Whitbread stock in a transaction that occurred on Tuesday, August 11th. The stock was purchased at an average price of GBX 2,456 per share, with a total value of £11,911.60. Corporate insiders own 0.42% of the company’s stock.

Whitbread Company Profile

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.