NEW YORK (TheStreet) -- Shares of Extended Stay America (STAY) are spiking 8.05% to $13.83 on heavy trading volume on Tuesday afternoon following the release of its 2015 fourth quarter results.

Before today's opening bell, the Charlotte, NC-based hotel operator reported adjusted earnings of 15 cents per diluted share, exceeding analysts' expectations for earnings of 13 cents per share.

Revenue increased 4.8% to $296.3 million year-over-year and was higher than Wall Street's estimates of $292.73 million.

For the full year, Extended Stay America forecasts revenue between $1.27 billion and $1.29 billion.

"As we look to 2016, we remain confident in our ability to grow. Given our geographic diversification, our limited exposure to gateway cities and international travel, low supply growth in our segment, and the demonstrated success of our initiatives, we believe that we will continue to outperform," CEO Gerry Lopez said in a statement.

The company is an owner and operator of company-branded hotels in North America. It operates in the extended stay lodging industry.

About 1.05 million of Extended Stay America's shares were traded by this afternoon compared to its average volume of 856,370 shares per day.

Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.

This is driven by some concerns, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered. 

The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, deteriorating net income, generally high debt management risk and disappointing return on equity.

Recently, 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.

You can view the full analysis from the report here: STAY

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