Service Properties Trust Down 4.58% To $7.29 After Earnings

Service Properties Trust (SVC) said after close Wednesday that it earned $0.31 per share in quarter four 2023.

On the revenue line, the company reported $444.1 million, beating estimates by $16.9 million.

In the same quarter a year ago, the company earned $0.44 per share on revenue of $455.2 million.

The stock is down 4.58% to $7.29 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

Wall Street Analysts had an average rating of Hold on the stock prior to the report.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Service Properties Trust has performed a little below average during the past few months. Before the report, Service Properties Trust received a Long-Term Technical Rank by InvestorsObserver of 33, putting it in the bottom half of stocks. The firm set a 52-week low on November 13, 2023 at $6.84 and set a 52-week high on March 6, 2023 at $11.57.

Service Properties Trust is a real estate investment trust that owns hotel properties. These properties are located primarily in the United States, along with Canada and Puerto Rico. The company operates through its hotel investment unit and net lease investments. The firm derives the majority of its revenue from the hotel real estate investments unit. The hotels are distinguished between their service levels, which include full service, select service, and extended stay; and chain scale, which includes luxury, upper upscale, upscale, upper midscale, and midscale. Most hotels are extended stay or upscale. Some of the major hotel brands include Courtyard by Marriott, Royal Sonesta, Crowne Plaza Hotels & Resorts, and Hyatt Place.