Bull of the Day: Ryman Hospitality (RHP) - Bull of the Day
Ryman Hospitality (RHP) has seen its estimates rise due to strong Q4 results in both earnings and revenues, increased advanced bookings, and positive 2015 guidance. These factors combined with management’s success in marketing and sales since 2013 have made Ryman Hospitality Zack’s Bull of the Day.
This Zacks Rank #1 (Strong Buy) is a Real Estate Investment Trust specializing in group-oriented destination hotel assets in urban resort markets. The company also operates a number of media and entertainment assets that includes the Grand Ole Opry, the Ryman Auditorium and WSM-AM.
Currently, management is encouraged by prospective and tentative bookings, which have seen tentative bookings up 10% year over year, and prospective bookings up 8% year over year. Further, management has seen 2016 bookings increase 5% year over year due to an improved pricing environment. Further, management stated that they plan on repurchasing 4.7 million warrants by the completion of the first quarter 2015; this would eliminate all overhangs from their business transition in 2013.
Increasing Estimates
The table below show the historic and future EPS estimates for Ryman Hospitality.
Over the past 30 days estimates for Q1 15 and FY 15 have increased; Q1 15 rose from $1.02 to $1.13, and FY 15 jumped from $4.84 to $5.17.
Positive Earnings Surprise
In Q4 14, Ryman Hospitality posted a positive earnings surprise of 9.37%, and saw a +5.7% price impact due to the strong earnings results. These positive numbers along with a better hospitality segment outlook, and the elimination of the 4.7 million in warrants has caused the estimates for Ryman to increase.
Bottom Line
Ryman Hospitality has worked very hard since 2013, when it converted to a REIT, to resolve their marketing and sales issues, and have finally turned the corner. The company has increased transient demand and has reduced overall costs to the company. Due to these positives, management increased its quarterly common dividend to $0.65. The company reports Q1 15 results on May 5.
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