Shares of Target Hospitality (NASDAQ: TH) soared 16% on Wednesday after the workforce lodging company announced better-than-expected quarterly results and a new contract award.

On the former, Target Hospitality's third-quarter 2023 revenue declined 8.5% year over year to $145.9 million, translating to generally accepted accounting principles (GAAP) net income of $45.6 million, or $0.43 per share. Analysts, on average, were expecting slightly lower net income on revenue of $140.8 million.

Target Hospitality also announced a new contract award for the Influx Care Facility (ICF) located at Target's Pecos Children's Center community. The award was given to Target's non-profit partner on Nov. 6, 2023, is a continuation of a five-year contracting vehicle established this past March, and gives the U.S. government the ability to continue offering services at the Pecos Children's Center through 2028. While the contract specifications have yet to be finalized with the non-profit partner, Target Hospitality expects to provide additional details in the coming weeks.

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Source Fool.com