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Marriott (MAR) to Report Q3 Earnings: What's in the Offing?
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Marriott International, Inc. (MAR - Free Report) is scheduled to release third-quarter 2022 results on Nov 3, 2022, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 13.2%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter bottom line is pegged at $1.69 per share, indicating growth of 70.7% from 99 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $5,266 million, suggesting growth of 33.5% from the prior-year quarter’s reported figure.
Marriott International, Inc. Price and EPS Surprise
Let's look at how things have shaped up in the quarter.
Key Factors to Note
Marriot’s third-quarter performance is likely to have benefited from the reopening of international borders, leniency in travel restrictions, unit expansion strategies and hotel conversions. During the previous quarter, the company witnessed a steady increase in demand in the United States, Canada, the Middle East and Africa regions. The company benefited from robust leisure demand and business and cross-border travel improvements. It also reported a strong RevPAR recovery in Europe. With global trends improving, the recovery momentum is likely to have continued in the to-be-reported quarter. Attributes such as pent-up demand for all types of travel, the shift of spending toward experiences versus goods, sustained high levels of employment, lifting of travel restrictions and opening borders (in most markets) are likely to have boosted the company’s performance in the to-be-reported quarter.
Increased focus on the Marriott Bonvoy loyalty program bodes well for the company. With nearly 169 million members globally, the company’s loyalty program Marriott Bonvoy plays a supporting hand in its marketing strategies. The company is engaging its customers with promotional offers such as grocery and retail spending accelerators on its co-branded credit cards (American Express and Chase). During the second quarter of 2022, the number of global card accounts rose 16% from 2019 levels. Given the meaningful pickup in demand coupled with solid customer acceptance for credit card programs, the momentum is likely to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for third-quarter revenues at base management and franchise fees is pegged at $269 million and $662 million, indicating year-over-year growth of 41.6% and 24.2%, respectively.
However, coronavirus-induced travel restrictions (in China), supply chain disruptions and labor shortages are likely to have affected the company’s operations in the third quarter. Although revenue per available room (RevPAR) is likely to have increased sequentially, it is expected to have remained below pre-pandemic levels.
What the Zacks Model Unveils
Our proven model predicts 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.
Earnings ESP: Marriott has an Earnings ESP of +1.55%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Crocs, Inc. (CROX - Free Report) has an Earnings ESP of +1.48% and a Zacks Rank #1.
Shares of Crocs have declined 57.2% in the past year. CROX’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 21.9%.
RCI Hospitality Holdings, Inc. (RICK - Free Report) has an Earnings ESP of +4.15% and a Zacks Rank #2.
Shares of RCI Hospitality have increased 21% in the past year. RICK’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 39.4%.
Cedar Fair, L.P. (FUN - Free Report) has an Earnings ESP of +2.38% and a Zacks Rank #3.
Shares of Cedar Fair have declined 12.8% in the past year. FUN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 5.3%.
Image: Shutterstock
Marriott (MAR) to Report Q3 Earnings: What's in the Offing?
Marriott International, Inc. (MAR - Free Report) is scheduled to release third-quarter 2022 results on Nov 3, 2022, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 13.2%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter bottom line is pegged at $1.69 per share, indicating growth of 70.7% from 99 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $5,266 million, suggesting growth of 33.5% from the prior-year quarter’s reported figure.
Marriott International, Inc. Price and EPS Surprise
Marriott International, Inc. price-eps-surprise | Marriott International, Inc. Quote
Let's look at how things have shaped up in the quarter.
Key Factors to Note
Marriot’s third-quarter performance is likely to have benefited from the reopening of international borders, leniency in travel restrictions, unit expansion strategies and hotel conversions. During the previous quarter, the company witnessed a steady increase in demand in the United States, Canada, the Middle East and Africa regions. The company benefited from robust leisure demand and business and cross-border travel improvements. It also reported a strong RevPAR recovery in Europe. With global trends improving, the recovery momentum is likely to have continued in the to-be-reported quarter. Attributes such as pent-up demand for all types of travel, the shift of spending toward experiences versus goods, sustained high levels of employment, lifting of travel restrictions and opening borders (in most markets) are likely to have boosted the company’s performance in the to-be-reported quarter.
Increased focus on the Marriott Bonvoy loyalty program bodes well for the company. With nearly 169 million members globally, the company’s loyalty program Marriott Bonvoy plays a supporting hand in its marketing strategies. The company is engaging its customers with promotional offers such as grocery and retail spending accelerators on its co-branded credit cards (American Express and Chase). During the second quarter of 2022, the number of global card accounts rose 16% from 2019 levels. Given the meaningful pickup in demand coupled with solid customer acceptance for credit card programs, the momentum is likely to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for third-quarter revenues at base management and franchise fees is pegged at $269 million and $662 million, indicating year-over-year growth of 41.6% and 24.2%, respectively.
However, coronavirus-induced travel restrictions (in China), supply chain disruptions and labor shortages are likely to have affected the company’s operations in the third quarter. Although revenue per available room (RevPAR) is likely to have increased sequentially, it is expected to have remained below pre-pandemic levels.
What the Zacks Model Unveils
Our proven model predicts 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.
Earnings ESP: Marriott has an Earnings ESP of +1.55%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Poised to Beat Earnings Estimates
Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
Crocs, Inc. (CROX - Free Report) has an Earnings ESP of +1.48% and a Zacks Rank #1.
Shares of Crocs have declined 57.2% in the past year. CROX’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 21.9%.
RCI Hospitality Holdings, Inc. (RICK - Free Report) has an Earnings ESP of +4.15% and a Zacks Rank #2.
Shares of RCI Hospitality have increased 21% in the past year. RICK’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 39.4%.
Cedar Fair, L.P. (FUN - Free Report) has an Earnings ESP of +2.38% and a Zacks Rank #3.
Shares of Cedar Fair have declined 12.8% in the past year. FUN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 5.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.