Gravy Train Coming for Orient-Express
Compared with this time last year, when travel was still being affected by the SARS epidemic and the war with Iraq, business is booming. However, shares of travel-related stocks have stumbled. In the last month, while the S&P 500 is up nearly 1%, the Dow Jones Lodging Index is down about 3%.
Perhaps this is because many of these stocks had such a big run-up leading to the summer months, so the expectations of better results were already factored into the shares. Indeed, the lodging index is up close to 10% year to date, still better than the flattish return on the market overall.
This does not explain, however, why shares of Orient-Express Hotels (OEH:NYSE) -- the owner and operator of ultra-high-end and unique hotel properties around the world -- have not only lagged the market in the past month, down slightly more than 3%, but have also underperformed year to date, falling 6%.
Orient-Express' underperformance comes even though the firm not only reported better-than-expected second-quarter results -- earnings of 38 cents, up nearly 23% from last year and a penny better than the consensus estimate -- but also sounded very bullish about upcoming third-quarter results.
External Source - For the complete article click here
Logos, product and company names mentioned are the property of their respective owners.
- O'Charley's Signs 50-Store Franchise Agreement with Covelli Enterprises
- MyWebsitePromotions - Revolutionary Marketing Tool For Marketing Directors
- O'Charley's 1Q Profit Up on Higher Sales
- O'Charley's Inc. Names Hislop O'Charley's Concept President
- O'Charley's Inc. Adds Four New States to Franchising Program
- Supertel Hospitality Reports 2012 First Quarter Results
- Summit Hotel Properties First Quarter Sales Increase 23.5%
- Meliá Hotels International Reports First Quarter Euro4.7 Million Profit (+0.2%)
- Home Inns First Quarter 2012 Revenue Increased 66% Year over Year to RMB 1.26 Billion
- China Lodging Group First Quarter Net Revenues UP 53.0%
