Choice Hotels International Inc. (CHH) released its first quarter results on Monday, May 10, 2021. The company reported net earnings of $0.40 per share for the first quarter ending March 31, 2021. Earnings for this past quarter declined 60 percent compared to the same period a year ago.
The company was founded in 1939 and is based in Rockville, Maryland. Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor worldwide. The company operates in Hotel Franchising and Corporate & Other segments.
Choice Hotels International's revenue decreased 34 percent over the past trailing twelve-month period versus the previous twelve-month period. Gross margins increased to 47.25% for the first quarter compared to the same period in the previous year, and operating margins increased to 24.05% over the same period. Net earnings for past trailing twelve months were $42.04 million, down 83% from the prior year.
Moving on to the balance sheet, Choice Hotels International's cash levels dropped 31% for the first quarter over the same period last year. Overall liquidity of the balance sheet, as measured by the current ratio, decreased 12.22% this past year. The current ratio for Choice Hotels International now stands at 1.83. The company increased shares outstanding by 0.36%.
Shares of CHH are currently trading around $115.27. In terms of valuation, the stock is trading at a trailing twelve-month price to earnings ratio of 152.57 and price to book ratio of 333.56.