Target Hospitality (TH) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Zacks Equity Research
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For the quarter ended June 2023, Target Hospitality (TH) reported revenue of $143.63 million, up 31% over the same period last year. EPS came in at $0.44, compared to $0.24 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $134.6 million, representing a surprise of +6.71%. The company delivered an EPS surprise of +18.92%, with the consensus EPS estimate being $0.37.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Target Hospitality performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Revenue- Hospitality & Facilities Services - South: $39.15 million versus the two-analyst average estimate of $36.24 million.

  • Revenue- All Other: $3.30 million versus $1.47 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +385.6% change.

  • Revenue- Government: $101.18 million versus the two-analyst average estimate of $95.16 million. The reported number represents a year-over-year change of +35.1%.

  • Adjusted Gross Profit- Hospitality & Facilities Services - South: $13.29 million versus the two-analyst average estimate of $12.92 million.

  • Adjusted Gross Profit- Government: $87.54 million versus $81.83 million estimated by two analysts on average.

View all Key Company Metrics for Target Hospitality here>>>

Shares of Target Hospitality have returned -3.4% over the past month versus the Zacks S&P 500 composite's +2.4% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.

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