Extended Stay America Q3 Results Miss Estimates; Cuts FY14 Outlook

(RTTNews) - Extended Stay America, Inc. (STAY) reported net income for the third quarter of $60.2 million, compared to net income of $46.6 million for the year-ago quarter.

Adjusted Paired Share Income for the third quarter was $59.9 million, or $0.29 per Paired Share, compared to $52.8 million or $0.31 per Paired Share.

Total revenues for the third quarter increased 7.9% to $338.55 million from $313.65 million a year ago.

Analysts polled by Thomson Reuters expected the company to earn $0.34 per share on revenue of $344.00 million for the third quarter. Analysts' estimates typically exclude special items.

Revenue per available room, or RevPAR, for the third quarter increased 8.2% over the comparable period in 2013, driven by an improvement in average daily rate of 7.4% and an increase in occupancy to 79.3% as compared to 78.7% in the comparable period in 2013.

For the full year 2014, the company now expects total revenues of $1.210 billion to $1.216 billion and net income of $145.5 million to $154.9 million. Previously, the company expected revenue of$1.212 billion to $1.246 billion and net income of $164.3 million to $194.2 million. Analysts currently expect the company to post revenue of $1.23 billion for the full year 2014.