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Dismal Occupancy to Hurt Marriott's (MAR) Earnings in Q3
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Marriott International, Inc. (MAR - Free Report) is scheduled to report third-quarter 2020 results on Nov 6, before the opening bell. In the last-reported quarter, the company delivered a negative earnings surprise of 45.5%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter bottom line is pegged at a loss of 7 cents per share. In the prior-year quarter, the company reported earnings per share of $1.47. The consensus mark for revenues stands at $2,395 million, suggesting a decline of 54.7% from the year-ago reported figure.
Factors to Note
Marriot’s third-quarter results are likely to reflect the impact of the coronavirus pandemic. Results in the to-be-reported quarter are likely to be negatively impacted by dismal revenue per available room (RevPAR) and occupancy rates. Per the reports, worldwide comparable system-wide constant dollar RevPAR declined 90% in April, 85% in May, 78% in June and 70% in July 2020, compared to the same periods in 2019. Meanwhile, worldwide occupancy rates have reached nearly 34 percent for the week ended Aug 1, 2020 compared to a bottom of 11% in the week ended Apr 11, 2020. Although occupancy rates and RevPAR are improving, it is still well below the pre-pandemic level.
Moreover, per the Zacks Consensus Estimate, RevPAR for worldwide is likely to witness a decline of nearly 70%. Comparable system-wide RevPAR in North America is estimated to witness a decline of nearly 71%. Moreover, dismal RevPAR in Europe, Caribbean and Latin America, and the Middle East and Africa, might get reflected in the to-be-reported quarter’s results.
Nonetheless, increased focus on unit-expansion strategies, loyalty program and asset-light business model are likely to have aided the company’s performance in the quarter to be reported.
Marriott International, Inc. Price and EPS Surprise
Our proven model does not conclusively predict an earnings beat for Marriott this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
Earnings ESP: Marriott has an Earnings ESP -75.78%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this time around.
Electronic Arts Inc. (EA - Free Report) has an Earnings ESP of +400% and a Zacks Rank #3.
Caesars Entertainment, Inc. (CZR - Free Report) has an Earnings ESP of +5.97% and a Zacks Rank #3.
Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +6.19% and a Zacks Rank #3.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain. Click Here, See It Free >>
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Dismal Occupancy to Hurt Marriott's (MAR) Earnings in Q3
Marriott International, Inc. (MAR - Free Report) is scheduled to report third-quarter 2020 results on Nov 6, before the opening bell. In the last-reported quarter, the company delivered a negative earnings surprise of 45.5%.
Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter bottom line is pegged at a loss of 7 cents per share. In the prior-year quarter, the company reported earnings per share of $1.47. The consensus mark for revenues stands at $2,395 million, suggesting a decline of 54.7% from the year-ago reported figure.
Factors to Note
Marriot’s third-quarter results are likely to reflect the impact of the coronavirus pandemic. Results in the to-be-reported quarter are likely to be negatively impacted by dismal revenue per available room (RevPAR) and occupancy rates. Per the reports, worldwide comparable system-wide constant dollar RevPAR declined 90% in April, 85% in May, 78% in June and 70% in July 2020, compared to the same periods in 2019. Meanwhile, worldwide occupancy rates have reached nearly 34 percent for the week ended Aug 1, 2020 compared to a bottom of 11% in the week ended Apr 11, 2020. Although occupancy rates and RevPAR are improving, it is still well below the pre-pandemic level.
Moreover, per the Zacks Consensus Estimate, RevPAR for worldwide is likely to witness a decline of nearly 70%. Comparable system-wide RevPAR in North America is estimated to witness a decline of nearly 71%. Moreover, dismal RevPAR in Europe, Caribbean and Latin America, and the Middle East and Africa, might get reflected in the to-be-reported quarter’s results.
Nonetheless, increased focus on unit-expansion strategies, loyalty program and asset-light business model are likely to have aided the company’s performance in the quarter to be reported.
Marriott International, Inc. Price and EPS Surprise
Marriott International, Inc. price-eps-surprise | Marriott International, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Marriott this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.
Earnings ESP: Marriott has an Earnings ESP -75.78%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this time around.
Electronic Arts Inc. (EA - Free Report) has an Earnings ESP of +400% and a Zacks Rank #3.
Caesars Entertainment, Inc. (CZR - Free Report) has an Earnings ESP of +5.97% and a Zacks Rank #3.
Choice Hotels International, Inc. (CHH - Free Report) has an Earnings ESP of +6.19% and a Zacks Rank #3.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
Click Here, See It Free >>