Marriott’s Upcoming Earnings: What to Expect from the Hotel Giant
With a market cap of $76.7 billion, Marriott International, Inc. (MAR) stands as a prominent leader in the hotel industry, managing a diverse range of hotels, residences, and timeshare properties worldwide. The company encompasses several well-known brands, including JW Marriott, The Ritz-Carlton, and Courtyard by Marriott, catering to a wide array of travelers. As MAR prepares to disclose its fiscal Q4 earnings on Tuesday, Feb. 11, many are curious about the company’s performance.
Forecasted Earnings and Recent Trends
Analysts predict that Marriott will report a profit of $2.38 per share, which marks a 33.3% decrease from last year’s $3.57 per share. The company’s track record has been mixed; it exceeded Wall Street’s earnings expectations in two of the last four quarters but missed estimates on the other two occasions. In Q3, MAR fell short by 2.2% of the consensus EPS estimate.
2024 Expectations and Future Growth
Looking ahead, analysts forecast that the Bethesda, Maryland-based company will deliver an EPS of $9.25 in fiscal 2024, which is a 7.4% decline from $9.99 in fiscal 2023. However, there is optimism for a rebound, with EPS expected to rise by 15.2% to $10.66 in fiscal 2025.
Recent Stock Performance
Over the past 52 weeks, shares of MAR have increased by 21.7%, though this falls short of the S&P 500 Index’s ($SPX) 26.5% increase and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 33.1% growth in the same period.
Impact of Q3 Results on Stock Value
On Nov. 4, Marriott International’s shares fell by 1.6% due to disappointing Q3 earnings, which included an adjusted EPS of $2.26 and revenues of $6.3 billion, both lower than anticipated. The company also reduced its 2024 outlook, estimating adjusted EPS between $9.19–$9.27 and gross fee revenues at $5.1 billion to $5.2 billion, modestly below previous forecasts. Despite some favorable trends, such as increased RevPAR and portfolio expansion, these changes raised concerns among investors and negatively affected the stock price.
Analysts’ Recommendations
The consensus among analysts regarding Marriott International’s stock leans towards cautious optimism, with an overall “Moderate Buy” rating. Of the 23 analysts monitoring MAR, five recommend a “Strong Buy,” one suggests a “Moderate Buy,” and 17 opt for “Hold.”
As of this writing, shares of MAR are trading below the average analyst price target of $282.81.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here. More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
