- Marriott International revised its full-year adjusted EPS forecast to $9.23 – $9.40, down from the previous $9.31 – $9.65, with an initial estimate of $9.50.
- The company adjusted its full-year EBITDA outlook to $4.95 billion – $5.02 billion, previously $4.96 billion – $5.09 billion, with an estimate of $5.03 billion.
- Gross fee revenues are forecasted to be between $5.13 billion – $5.18 billion, versus the previous $5.18 billion – $5.28 billion.
- Investment expenditure projections remain steady at $1.00 billion – $1.20 billion.
Third Quarter Forecast
- Adjusted EPS for Q3 is projected at $2.27 – $2.33, below the estimate of $2.38.
- Anticipated Q3 EBITDA is $1.23 billion – $1.25 billion, compared to the estimate of $1.26 billion.
- Gross fee revenues for Q3 are forecasted at $1.28 billion – $1.29 billion.
Second Quarter Results
- Q2 Adjusted EPS was $2.50, up from $2.26 year-over-year, exceeding the estimate of $2.47.
- Reported EPS for Q2 was $2.69, an increase from $2.38 year-over-year.
- Q2 Revenue reached $6.44 billion, a 6% increase year-over-year, though below the estimate of $6.51 billion.
- North America Revenue Per Available Room (REVPAR) grew by 3.9% in constant currency.
- Worldwide REVPAR increased by 4.9% in constant currency.
- Q2 Adjusted EBITDA was $1.32 billion, an 8.6% rise year-over-year, beating the estimate of $1.31 billion.
- Adjusted operating income for Q2 was $1.12 billion, up 7.4% year-over-year, aligning with the estimate of $1.11 billion.
- The adjusted operating margin stood at 65%, compared to 64% year-over-year, slightly below the estimate of 65.2%.
- The total number of locations increased by 4.4% year-over-year to 8,969, surpassing the estimate of 8,767.
- Total rooms at the end of the period were 1.66 million, a 6% increase year-over-year, matching the estimate.
Comments
- Marriott continues to expand its global portfolio and expects net rooms growth of 5.5% to 6% for the full year 2024.
Analysts’ Ratings
- There are 6 buy ratings, 21 hold ratings, and 1 sell rating for Marriott International.
Marriott International on Smartkarma
Analysts on Smartkarma, like Baptista Research, are bullish on Marriott International, citing the company’s strong performance. According to Baptista Research‘s report titled “Marriott International: Symbiotic Strengths Fueling Marriott’s Market Dominance! – Major Drivers,” Marriott’s first quarter earnings in 2024 showcased positive trends despite the pandemic’s impact. Global RevPAR saw a 4.2% increase, with occupancy reaching nearly 66% and ADR rising around 3% compared to the previous year.
In another report by Baptista Research, “Marriott International: Increased Demand from Corporates and Leisure Customers Changing The Game? – Major Drivers,” the firm highlighted Marriott’s robust performance in 2023 driven by strong travel demand and a diverse brand portfolio. The global RevPAR surged nearly 15%, while net rooms increased by 4.7%, contributing to profitable growth in earnings and cash flows. The fourth quarter saw a notable over 7% year-on-year increase in global RevPAR, supported by growth in ADR and occupancy levels.
A look at Marriott International Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Marriott International Inc., a global hotel operator and franchisor known for its various brand names, has received favorable Smartkarma Smart Scores across key factors. With a high Growth score of 5 and a strong Resilience score of 5, the company appears poised for long-term success. This indicates a positive outlook for Marriott International‘s expansion and ability to withstand market challenges.
Despite a lower Momentum score of 3, the company’s Dividend score of 2 suggests a moderate performance in terms of dividend payouts. The Value score of 0 indicates that investors may need to consider other factors beyond traditional value metrics when evaluating Marriott International. Overall, with its robust growth prospects and resilience, Marriott International seems well-positioned for sustained success in the hospitality industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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