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Factors Likely to Influence Marriott (MAR) Earnings in Q1

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Marriott International, Inc. (MAR - Free Report) is scheduled to report first-quarter 2019 results on May 10, before the opening bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 2.9%. Additionally, it posted an average trailing four-quarter positive earnings surprise of 16.8%.

Q1 Expectations

The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.34, flat with the prior-year quarter reported figure. Of late, the company’s earnings estimates have been stable. For quarterly revenues, the consensus mark is pinned at nearly $5.12 billion, suggesting growth of 2.2% from the year-ago quarter number.
    
Let us delve deeper into factors that are likely to influence Marriott first-quarter results.

Factors at Play

Marriott’s top line in the to-be-reported quarter is likely to gain from system-wide North America RevPAR growth, courtesy favorable timing of Easter group business. Furthermore, the company expects comparable system-wide RevPAR to increase in the 1-2% range in North America in constant currency. Rising demand for hotels in international markets and expansion of its brands are also likely to provide a boost to the top line. Meanwhile, strong room growth is driving the company’s performance. Marriott is optimistic about its growth potential in the Asia Pacific market.

Marriott efforts to capitalize on global travel trends in China, India and Indonesia also bode well. High population along with a burgeoning middle class is expected to help the company derive profits from operations in these countries. China continues to be the most important growth driver for Marriott, with more than 300 hotels in the pipeline.

Marriott International Price and EPS Surprise

What Does the Zacks Model Unveil?

Our proven model does not show that Marriott is likely to beat earnings estimates in first-quarter 2019. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.  

Marriott has an Earnings ESP of -2.17% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Consumer Discretionary sector that investors may consider as our model shows that these have the right combination of elements to come up with an earnings beat in the to-be-reported quarter:

Melco Resorts & Entertainment Limited (MLCO - Free Report) has an Earnings ESP of +24.00% and a Zacks Rank #3. The company is scheduled to report quarterly numbers on May 7.

SeaWorld has an Earnings ESP of +16.13% and a Zacks Rank #1. The company is scheduled to report quarterly numbers on May 7.

PlayAGS, Inc. (AGS - Free Report) has an Earnings ESP of +22.22% and a Zacks Rank #2. The company is scheduled to report quarterly numbers on May 8.

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