Before today's opening bell, the Bethesda, MD-based hotel real estate investment trust reported adjusted funds from operations of 31 cents per share, missing analysts estimated 32 cents per share. Revenue came in at $256.7 million, falling short of analysts expected $257.83 million.
Funds from operations is a key metric in the REIT industry, which takes net income and adds back items like depreciation and amortization.
During the 2015 second quarter, DiamondRock posted earnings of 31 cents per share on revenue of $249.8 million.
DiamondRock sold three hotels in 2016, including the Orlando Airport Marriott, Hilton Minneapolis and Hilton Garden Inn Chelsea/New York City, for a combined total of $275 million.
Additionally, the company slashed its forecast in several areas. Comparable RevPAR Growth is expected to be flat or 1%, down from the company's previous guidance of 2% to 4%.
Full-year adjusted FFO earnings are projected to be in the range of 99 cents per share and $1.04 per share, lowered from its prior estimated range of $1.04 per share and $1.09 per share.
Shares of DiamondRock Hospitality were advancing in afternoon trading on Friday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate DIAMONDROCK HOSPITALITY CO as a Buy with a ratings score of B. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, reasonable valuation levels and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: DRH