We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's What to Expect From Marriott's (MAR) Q3 Earnings
Read MoreHide Full Article
Marriott International, Inc. (MAR - Free Report) is scheduled to release third-quarter 2023 results on Nov 2 before the opening bell.
In the previous quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 3.2% and 0.5%, respectively.
Marriott’s earnings topped the consensus mark in three of the trailing four quarters and remained flat on one occasion, the average surprise being 5.5%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter earnings per share has increased to $2.10 from $2.09 in the past 30 days. The expected figure indicates growth of 24.3% from earnings of $1.69 per share reported in the year-ago quarter.
Marriott International, Inc. Price and EPS Surprise
For revenues, the consensus mark is pegged at $5.9 billion, suggesting growth of 11% from the prior-year quarter’s reported figure of $5.31 billion.
Key Factors to Consider
Revenues
Marriott’s third-quarter revenues are likely to increase on a year-over-year basis, courtesy of robust leisure demand, strong global booking trends and an increase in international travel. These factors are likely to have driven revenue per available room (RevPAR), especially on a global basis. This reflects the boost in occupancy rates and average daily rate year over year. With solid global trends, the recovery momentum is likely to have continued in the quarter under review.
Owing to an increase in RevPAR, unit growth and higher co-branded credit card fees for the second quarter, Marriott anticipates gross fee revenues to be in the range of $1,185-$1,210 million, up from the previous quarter’s reported value of $1,059 million.
For the to-be-reported quarter, our model predicts gross fee revenues to be $1,195.2 million, up 12.9% year over year. We also anticipate owned, leased, and other revenues to increase 5.7% to $364.6 million year over year.
The company expects to witness strong year-over-year growth in the international markets, primarily in Europe and Asia Pacific, in the third quarter. The increase in international travel demand and booking trend growth have majorly added to the anticipation. Also, the upliftment of travel restrictions, mainly in Greater China, added to the uptrend.
Geographically, for the to-be-reported quarter, the company expects RevPAR year-over-year growth in worldwide, international, and U.S. & Canada markets to be within the respective ranges of 6-8%, 17-19% and 2-4%.
We expect RevPAR in worldwide, international, and U.S. & Canada markets to grow 6.7% to $128.6, 17.3% to $118.9, and 3.1% to $132.9, respectively, year over year. We also expect Asia Pacific RevPAR to grow 30.9% to $115.1 year over year.
For the third quarter, our model also predicts the total number of rooms to increase 5.2% to 1,586,255 units on a year-over-year basis.
Margins
Although persisting inflationary pressures and economic uncertainties are primary concerns, Marriott is still likely to witness margin and earnings growth on a year-over-year basis. The improvement in global trends, increase in international travel demand and RevPAR growth are likely to have helped the company to position itself in the tough economic conditions.
For the third quarter, Marriott expects general, administrative, and other expenses to range within $250-$240 million, up from $216 million reported in the prior-year quarter. Adjusted EBITDA is expected to range within $1,105-$1,140 million, up from $985 million in the year-ago quarter.
For the quarter, we expect the company’s general, administrative, and other expenses to increase 11.7% to $241.4 million year over year. Also, adjusted EBITDA is expected to rise 14.1% to $1,123.6 million year over year.
Furthermore, we also expect adjusted EBITDA and operating margins to increase 190 basis points (bps) to 20.4% and 190 bps to 17.2%, respectively, year over year.
What Our Model Indicates
Our proven model does not conclusively predict an earnings beat for Marriott this time around. The company does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: The Earnings ESP for MAR is -0.19%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: MAR currently carries a Zacks Rank of 3.
Stocks With the Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary space, which according to our model, have the right combination of elements to deliver an earnings beat this time around.
DKNG’s earnings for the to-be-reported quarter are expected to increase 31%. The company reported better-than-expected earnings in three out of the four quarters and missed on the remaining one occasion, the average surprise being 12%.
Wynn Resorts, Limited (WYNN - Free Report) has an Earnings ESP of +17.89% and a Zacks Rank of 2.
WYNN’s earnings for the to-be-reported quarter are expected to increase 161.7%. The company reported better-than-expected earnings in two out of the trailing four quarters, met expectation on one occasion and missed the same on the remaining occasion, the average surprise being 83.6%.
MGM Resorts International (MGM - Free Report) has an Earnings ESP of +2.61% and a Zacks Rank of 2.
MGM’s earnings for the to-be-reported quarter are expected to increase 142.5%. The company reported better-than-expected earnings in three out of the trailing four quarters and missed the same on the remaining occasion, the average surprise being 105.7%.
Image: Shutterstock
Here's What to Expect From Marriott's (MAR) Q3 Earnings
Marriott International, Inc. (MAR - Free Report) is scheduled to release third-quarter 2023 results on Nov 2 before the opening bell.
In the previous quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 3.2% and 0.5%, respectively.
Marriott’s earnings topped the consensus mark in three of the trailing four quarters and remained flat on one occasion, the average surprise being 5.5%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter earnings per share has increased to $2.10 from $2.09 in the past 30 days. The expected figure indicates growth of 24.3% from earnings of $1.69 per share reported in the year-ago quarter.
Marriott International, Inc. Price and EPS Surprise
Marriott International, Inc. price-eps-surprise | Marriott International, Inc. Quote
For revenues, the consensus mark is pegged at $5.9 billion, suggesting growth of 11% from the prior-year quarter’s reported figure of $5.31 billion.
Key Factors to Consider
Revenues
Marriott’s third-quarter revenues are likely to increase on a year-over-year basis, courtesy of robust leisure demand, strong global booking trends and an increase in international travel. These factors are likely to have driven revenue per available room (RevPAR), especially on a global basis. This reflects the boost in occupancy rates and average daily rate year over year. With solid global trends, the recovery momentum is likely to have continued in the quarter under review.
Owing to an increase in RevPAR, unit growth and higher co-branded credit card fees for the second quarter, Marriott anticipates gross fee revenues to be in the range of $1,185-$1,210 million, up from the previous quarter’s reported value of $1,059 million.
For the to-be-reported quarter, our model predicts gross fee revenues to be $1,195.2 million, up 12.9% year over year. We also anticipate owned, leased, and other revenues to increase 5.7% to $364.6 million year over year.
The company expects to witness strong year-over-year growth in the international markets, primarily in Europe and Asia Pacific, in the third quarter. The increase in international travel demand and booking trend growth have majorly added to the anticipation. Also, the upliftment of travel restrictions, mainly in Greater China, added to the uptrend.
Geographically, for the to-be-reported quarter, the company expects RevPAR year-over-year growth in worldwide, international, and U.S. & Canada markets to be within the respective ranges of 6-8%, 17-19% and 2-4%.
We expect RevPAR in worldwide, international, and U.S. & Canada markets to grow 6.7% to $128.6, 17.3% to $118.9, and 3.1% to $132.9, respectively, year over year. We also expect Asia Pacific RevPAR to grow 30.9% to $115.1 year over year.
For the third quarter, our model also predicts the total number of rooms to increase 5.2% to 1,586,255 units on a year-over-year basis.
Margins
Although persisting inflationary pressures and economic uncertainties are primary concerns, Marriott is still likely to witness margin and earnings growth on a year-over-year basis. The improvement in global trends, increase in international travel demand and RevPAR growth are likely to have helped the company to position itself in the tough economic conditions.
For the third quarter, Marriott expects general, administrative, and other expenses to range within $250-$240 million, up from $216 million reported in the prior-year quarter. Adjusted EBITDA is expected to range within $1,105-$1,140 million, up from $985 million in the year-ago quarter.
For the quarter, we expect the company’s general, administrative, and other expenses to increase 11.7% to $241.4 million year over year. Also, adjusted EBITDA is expected to rise 14.1% to $1,123.6 million year over year.
Furthermore, we also expect adjusted EBITDA and operating margins to increase 190 basis points (bps) to 20.4% and 190 bps to 17.2%, respectively, year over year.
What Our Model Indicates
Our proven model does not conclusively predict an earnings beat for Marriott this time around. The company does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.
Earnings ESP: The Earnings ESP for MAR is -0.19%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: MAR currently carries a Zacks Rank of 3.
Stocks With the Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary space, which according to our model, have the right combination of elements to deliver an earnings beat this time around.
DraftKings Inc. (DKNG - Free Report) has an Earnings ESP of +17.52% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
DKNG’s earnings for the to-be-reported quarter are expected to increase 31%. The company reported better-than-expected earnings in three out of the four quarters and missed on the remaining one occasion, the average surprise being 12%.
Wynn Resorts, Limited (WYNN - Free Report) has an Earnings ESP of +17.89% and a Zacks Rank of 2.
WYNN’s earnings for the to-be-reported quarter are expected to increase 161.7%. The company reported better-than-expected earnings in two out of the trailing four quarters, met expectation on one occasion and missed the same on the remaining occasion, the average surprise being 83.6%.
MGM Resorts International (MGM - Free Report) has an Earnings ESP of +2.61% and a Zacks Rank of 2.
MGM’s earnings for the to-be-reported quarter are expected to increase 142.5%. The company reported better-than-expected earnings in three out of the trailing four quarters and missed the same on the remaining occasion, the average surprise being 105.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.