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2022-07-08 11:30:43 By : Ms. Sophie King

Target Hospitality Corp. raised its 2022 financial guidance after the company said it entered into an expanded lease and services agreement with its leading national nonprofit partner and the U.S. government in their humanitarian aid missions.

The modular home and hospitality company said it now expects 2022 revenue to be between $500 million and $510 million, up from a range of $325 million to $335 million that was provided in May.

Adjusted earnings before interest, taxes, depreciation and amortization is expected to come in between $295 million and $305 million. The company had previously forecast adjusted Ebitda of between $125 and $135 million for the year.

For the second quarter, Target Hospitality expects revenue between $102 million and $107 million, and adjusted EBITDA between $50 million and $55 million.

Shares of Target Hospitality rose almost 10% to $6.64. The stock is up about 70% this year.

The company said the boosted guidance was primarily related to its expanded lease and services agreement, which was announced earlier this week.

Target Hospitality said the expanded partnership includes enhanced amenities, comprehensive support services and customized infrastructure solutions for 6,400 displaced persons, nonprofit employees and related personnel, representing a 60% population increase from the initial contract. The agreement provides for significant scope expansion and term extension for the continuation of services previously announced in March 2021.

The company said with the expanded contract, about 73% of its anticipated 2022 revenue will be derived from its government segment.

Write to Will Feuer at

Companies that are in the habit of raising their regular dividends every year often are good choices for long-term growth.

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