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Target Hospitality Corp. TH reported fourth-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. However, the top and bottom lines declined on a year-over-year basis.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Following the results, the company's shares gained 6.4% during trading hours yesterday. Target Hospitality's results benefited from operational flexibility, enabling it to navigate varying business cycles and shifting customer demands. The company's strategic growth initiatives, including the multi-year Workforce Hub Contract award, played a crucial role in expanding and diversifying its contract portfolio. Additionally, the seamless reactivation of its Dilley, Texas assets, supported by well-positioned infrastructure and strong reputation, further contributed to positive momentum.
TH’s Q4 Earnings and Revenues
In the quarter under review, the company reported an adjusted earnings per share (EPS) of 12 cents, which beat the Zacks Consensus Estimate of 6 cents. In the prior-year quarter, it reported an adjusted EPS of 29 cents.
Total revenues of $83.7 million beat the consensus estimate of $80 million by 4.5%. However, the top line declined 33.7% year over year.
Target Hospitality Corp. Price, Consensus and EPS Surprise
Target Hospitality Corp. price-consensus-eps-surprise-chart | Target Hospitality Corp. Quote
TH Segments Discussion
Government: During the quarter, revenues in this segment amounted to $43.7 million compared with $87.5 million reported in the year-ago quarter. The segment's adjusted gross profit was $37.7 million compared with $65.7 million reported in the prior-year quarter.
The decline was largely attributed to a reduction in PCC variable services revenues, along with the absence of PCC Infrastructure Revenue Amortization, which were fully recognized by November 2023. Additionally, the termination of the STFRC Contract, effective from Aug. 9, 2024, contributed to the overall decrease.
Hospitality & Facilities Services - South: During the fourth quarter, revenues in this segment amounted to $36.7 million compared with $36.2 million reported in the year-ago quarter.
During the quarter, average utilized beds were 5,474 compared with 5,105 reported in the prior-year quarter. The average daily rate was $72.14 compared with $76.58 reported in the prior-year quarter. This upside was backed by the company’s added service offering. The segment's adjusted gross profit was $12.6 million compared with $12.4 million reported in the prior-year quarter.
All Other: Revenues of this segment amounted to $3.3 million compared with $2.5 million reported in the year-ago quarter.