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Leading hospitality company, Marriott International, Inc. (MAR - Analyst Report) is expected to beat the Zacks Consensus Estimates when it reports fourth quarter and full year 2012 results on February 19, 2013, after the closing bell.

Why a Likely Positive Surprise?

Our proven model shows that Marriott is likely to beat earnings as it has the appropriate combination of two key ingredients:

Positive Zacks ESP: Earnings ESP (Read: Zacks Earnings ESP: A Better Method), which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is at +3.64%. This is a meaningful and leading indicator for a likely positive earnings surprise for shares.

Zacks Rank #3 (Hold): Marriott currently retains a Zacks Rank #3 (Hold) which increases the predictive power of its ESP.

The combination of the stock’s Zacks Rank #3 (Hold) and +3.64% Earnings ESP makes us confident of a positive earnings surprise in the to-be-reported quarter.

Stocks with Zacks Ranks of #1, #2 and #3 have significantly higher chances of beating the earnings.

What is Driving the Better than Expected Earnings?

Marriott with its strong portfolio of leading brands offer a substantial geographic reach worldwide. The company’s lodging business in domestic market is constantly growing. In the third quarter of 2012, North America’s comparable system-wideRevPAR increased 6.3%, with the average daily rate growing 4.9%.

The company has a substantial development pipeline and is poised to benefit from the increase in demand for hotels, going forward. Marriott continues to expand its U.S. and international market share in 2012. Marriot expects to unveil nearly 28,000 rooms in 2012, including brand acquisitions.

Further, Marriott’s cost effective initiatives and share repurchase activities are highly impressive which will help it augment its performance, moving ahead.

Other Stocks to Consider

Marriott is not the only stock performing impressively this earnings season. We also observe that there are other companies, which are likely to beat earnings.

Intercontinental Hotels Group plc (IHG - Snapshot Report) has Earnings ESP of +2.78% and a Zacks Rank #1 (Strong Buy).

Marriott Vacations Worldwide Corp. (VAC - Snapshot Report) has Earnings ESP of +4.17% and a Zacks Rank #3 (Hold). The company is also scheduled to report its earnings results on Feb 21.

AFC Enterprises Inc. has Earnings ESP of +6.45% and a Zacks Rank #2 (Buy).

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