Revenue Analysis
Total and Operating Revenue: HST has shown a decreasing trend in total revenue moving from Q1 2023 to Q1 2024. Specifically, total revenue peaked at $1,391M in Q3 2023 and decreased to $1,471M in Q1 2024. Operating revenue followed a similar pattern.
Gross Profit Margins: Gross profit followed the revenue trend with the highest margin seen in Q3 2023 at $836M, which slightly fell to $870M by Q1 2024. This indicates a relatively stable gross profit margin.
Cost Management
Cost of Revenue: Cost of Revenue was highest during Q1 2023 at $553M and has varied slightly with a slight increase to $601M by Q1 2024.
Operating Expense: Operating expenses peaked in Q1 2023 at $577M and incrementally increased, reaching $610M in Q1 2024. Additionally, the breakdown includes general and administrative as well as selling expenses which consistently represent a significant portion of the operating expenditures.
Total Expenses: Total expenses followed a similar upward trend from $1.13B in Q1 2023 to $1.21B in Q1 2024, which shows an expansion in overall expenditure despite revenue decline.
Profitability Analysis
EBITDA: EBITDA has shown volatility, showing a decrease from $504M in Q1 2023 to $497M by Q1 2024. Peak EBITDA occurred at $441M during Q3 2023.
Operating Income: Operating income shows a decrease from $251M in Q1 2023 to $260M in Q1 2024, with its lowest being $106M in Q3 2023.
Pretax Income & Net Income: Pretax income slightly decreased from $270M in Q1 2024 from an initial $289M in Q1 2023. Net Income shows a short rise from $287M in Q1 2023 to $268M in Q1 2024.
Cash Flow Indicators
Reconciled Depreciation: Depreciation has generally increased from $169M in Q1 2023 to $180M in Q1 2024, indicating rising capital expenditure on fixed assets depreciation.
Interest Expense: Interest expenses have risen from $46M in Q1 2023 to $47M in Q1 2024, reflecting possibly increased borrowing costs or higher debt levels.
Taxation
Tax Rate & Tax Provision: The Tax Rate saw a reduction from 21% in Q1 2023 to 0.4% by Q1 2024. Meanwhile, tax provision varied, with some periods showing a tax recovery.
Tax Effect of Unusual Items: The tax effect of unusual items has generally been positive, contributing favorably to the net income.
Shareholder Metrics
Diluted and Basic EPS: Both Diluted and Basic EPS have shown a relative increase from $0.4 in Q1 2023 to $0.38 in Q1 2024.
Average Shares: There has been a minor increase in both basic and diluted average shares, indicating potential equity financing.
Net Income Available to Common Stockholders: Net income available to common stockholders mirrors the net income figures, maintaining consistency across periods.
Conclusion
Over the last 3 years, HST has demonstrated a capacity to maintain steady gross profits amidst varying revenue figures. A consistent rise in costs and expenses, matched with stable but moderately fluctuating profitability metrics, indicates potential areas for cost management improvement. Strategic focus on enhancing operational efficiency and possibly reassessing capital expenditure could be vital moving forward. Continued monitoring of tax obligations and finance costs is recommended given their significant variability during the period.