LuxUrban Hotels Inc. (NASDAQ:LUXH) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report.       Revenues beat expectations by 14% to hit US$32m, although earnings fell badly short, with LuxUrban Hotels reported a statutory loss of US$0.78 per share even though the analysts had been forecasting a profit.     Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual.  We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.  

See our latest analysis for LuxUrban Hotels

NasdaqCM:LUXH Earnings and Revenue Growth August 11th 2023

Taking into account the latest results, the most recent consensus for LuxUrban Hotels from three analysts is for revenues of US$128.8m in 2023. If met, it would imply a substantial 63% increase on its revenue over the past 12 months.      LuxUrban Hotels is also expected to turn profitable, with statutory earnings of US$0.19 per share.       Yet prior to the latest earnings, the analysts had been anticipated revenues of US$125.2m and earnings per share (EPS) of US$0.34 in 2023.        So it's pretty clear the analysts have mixed opinions on LuxUrban Hotels after the latest results; even though they upped their revenue numbers, it came at the cost of a large cut to per-share earnings expectations.    

The consensus price target was unchanged at US$9.33, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts.        The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is.   The most optimistic LuxUrban Hotels analyst has a price target of US$11.00 per share, while the most pessimistic values it at US$8.00.   These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.    

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of LuxUrban Hotels'historical trends, as the 165% annualised revenue growth to the end of 2023 is roughly in line with the 139% annual growth over the past year.    By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 10% per year.  So although LuxUrban Hotels is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.    

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for LuxUrban Hotels.        Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry.       There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.  

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider.   We have estimates - from multiple LuxUrban Hotels analysts - going out to 2025, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for LuxUrban Hotels that you need to be mindful of.  

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