Homeinns Profit Rises, Yet Misses Estimates

(RTTNews) - Chinese economy hotels operator Homeinns Hotel Group (HMIN) on Wednesday reported fourth-quarter net earnings of 84.6 million remnibis, or $13.6 million, compared with 12.9 million remnibis last year.

The recent quarter benefited from reduced losses related to change in fair value of convertible notes, the company said.

On a per American depositary share basis (ADS), earnings for the quarter were 1.77 remnibis, or $0.28, compared with 0.27 remnibis in the prior year.

Excluding one-time items, adjusted earnings per ADS for the quarter were 2.26 remnibis, or $0.36, compared with 1.91 remnibis per ADS a year ago.

Analysts polled by Thomson Reuters estimated earnings of 2.37 remnibis per ADS for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter were 1.64 billion remnibis, or $263.6 million, compared with 1.61 billion remnibis a year ago, the company said.

Net revenues for the quarter totaled 1.54 billion remnibis, or $247 million, compared with 1.51 billion remnibis last year.

Analysts estimated revenues of 1.56 billion remnibis for the quarter.

For the first quarter, the company expects total revenues of 1.45 billion remnibis to 1.48 billion remnibis, while analysts expect 1.47 billion remnibis.

For the full year 2015, the company expects total revenues of 6.8 billion remnibis to 7 billion remnibis, while analysts expect 6.76 billion remnibis.

Homeinns targets to open at least 400 new hotels in 2015. The company said it does not expect a quick market rebound and therefore will accordingly calibrate the development of new hotels.

The company has announced a share repurchase program of up to $35 million, effective for one year from today.