Hersha Hospitality's latest earnings, released today after the market close, beat analysts estimates by $0.02. AFFO(Adjusted Funds From Operations) per share was $0.23 per share compared to analyst's average estimate of $0.21 per share.
Overall, in my opinion, the earnings report was positive given this tough economic environment.
This report should have a positive impact on the stock price. The recent sell-off is unwarranted, IMHO.
I did not expect AFFO to exceed estimates at all, so I am pleasantly surprised. I expected them to beat only after Q4 but they seem to be doing things right. In their press release they said that they sold equity at weighted average of above $3 a share. So, the current prices below $3 is a sign of undervaluation. Based on what I project as future cashflow and including a perpetual growth rate of 2% in AFFO, my best estimate of fair value is $4.15. So this stock still has about 1:50 or so to rise. I only wish I had liquidity to buy more...