SOHO stock looks set to roll over after reporting earnings and revenue on June 24, 2020.

Sotherly Hotels reported Q1 EPS of ($1.01) versus the consensus estimate of (15c). The company reported Q1 revenue of $37.2 million versus the consensus estimate of $26.1 milllion.

CEO Dave Folsom commented, “In Q1, we saw the unfolding COVID-19 pandemic create the most impactful negative lodging environment in Sotherly’s 63-year history… We reduced our corporate staff by over 20%, and all employees, including our executive staff, took substantial reductions in pay and benefits, while all non-critical home office expenses were curtailed. Our Board of Directors concurrently waived all their fees and compensation for the quarter, and will revisit additional waivers each quarter. Our hotels have remained technically open during the pandemic, albeit with only a small cadre of key personnel that are needed to service minimal occupancy, but whose presence is necessary to ensure a smooth transition during the anticipated recovery, once government restrictions are lifted in our markets and customer demand returns. In recent weeks, we have seen some initial signs of increased demand for hotel rooms, but any material improvement in the lodging industry will ultimately depend upon actions taken by local, State, and Federal officials and consumer confidence regarding containment of the virus.”

SOHO stock triggered a sell signal on the 3-day chart:

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