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Marriott (MAR) to Report Q1 Earnings: What's in Store?
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Marriott International, Inc. (MAR - Free Report) is scheduled to release first-quarter 2023 results on May 2, before the opening bell. In the previous quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 6.5%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the first-quarter bottom line is pegged at $1.86 per share, indicating growth of 48.8% from $1.25 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $5,276 million, suggesting growth of 25.6% from the prior-year quarter’s reported figure.
Let's check out the factors that are likely to have influenced the quarter.
Key Factors to Note
Marriot’s first-quarter performance is likely to have benefited from robust leisure demand and business, and leniency in cross-border travel restrictions. With global trends improving, the recovery momentum is likely to have continued in the quarter under review. Attributes such as pent-up demand for all types of travel and resilient travel spending are likely to have boosted the company’s performance.
MAR is consistently trying to expand its worldwide presence and capitalize on the demand for hotels in the international markets, which is likely to have aided its performance during the quarter. For 2023, it anticipates net room growth in the range of 4-4.5% year over year. The company’s European pipeline has grown consistently in the recent past and the trend is expected to continue going forward as well.
Marriot is likely to have benefited from robust gross fees revenues, and owned, leased and other revenues. Our model predicts, gross fees revenues, and owned, leased and other revenues to increase 29.8% and 20.1% year over year to $1,058 million and $314.7 million, respectively.
However, COVID-19-induced travel restrictions (in China) and supply-chain disruptions are likely to have affected MAR’s operations in the first quarter. Although revenue per available room is likely to have increased sequentially in Greater China and Asia Pacific (excluding China), it is expected to have remained below pre-pandemic levels.
Marriott International, Inc. Price and EPS Surprise
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: Earnings ESP for MAR is +0.81%. 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 sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this time around.
Wynn Resorts, Limited (WYNN - Free Report) has an Earnings ESP of +111.38% and a Zacks Rank #2.
Shares of Wynn Resorts have gained 58% in the past year. WYNN’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 0.6%.
Caesars Entertainment, Inc. (CZR - Free Report) has an Earnings ESP of +84.62% and a Zacks Rank #3.
Shares of Caesars Entertainment have declined 38.6% in the past year. CZR’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 16.2%.
Hyatt Hotels Corporation (H - Free Report) has an Earnings ESP of +56.57% and a Zacks Rank #3.
Shares of Hyatt Hotels have increased 20.4% in the past year. H’s earnings beat estimates in each of the trailing four quarters, the average surprise being 1,380.7%.
Image: Shutterstock
Marriott (MAR) to Report Q1 Earnings: What's in Store?
Marriott International, Inc. (MAR - Free Report) is scheduled to release first-quarter 2023 results on May 2, before the opening bell. In the previous quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 6.5%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the first-quarter bottom line is pegged at $1.86 per share, indicating growth of 48.8% from $1.25 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $5,276 million, suggesting growth of 25.6% from the prior-year quarter’s reported figure.
Let's check out the factors that are likely to have influenced the quarter.
Key Factors to Note
Marriot’s first-quarter performance is likely to have benefited from robust leisure demand and business, and leniency in cross-border travel restrictions. With global trends improving, the recovery momentum is likely to have continued in the quarter under review. Attributes such as pent-up demand for all types of travel and resilient travel spending are likely to have boosted the company’s performance.
MAR is consistently trying to expand its worldwide presence and capitalize on the demand for hotels in the international markets, which is likely to have aided its performance during the quarter. For 2023, it anticipates net room growth in the range of 4-4.5% year over year. The company’s European pipeline has grown consistently in the recent past and the trend is expected to continue going forward as well.
Marriot is likely to have benefited from robust gross fees revenues, and owned, leased and other revenues. Our model predicts, gross fees revenues, and owned, leased and other revenues to increase 29.8% and 20.1% year over year to $1,058 million and $314.7 million, respectively.
However, COVID-19-induced travel restrictions (in China) and supply-chain disruptions are likely to have affected MAR’s operations in the first quarter. Although revenue per available room is likely to have increased sequentially in Greater China and Asia Pacific (excluding China), it is expected to have remained below pre-pandemic levels.
Marriott International, Inc. Price and EPS Surprise
Marriott International, Inc. price-eps-surprise | Marriott International, Inc. Quote
What Our Model Indicates
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: Earnings ESP for MAR is +0.81%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: MAR currently carries a Zacks Rank #2. 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 sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this time around.
Wynn Resorts, Limited (WYNN - Free Report) has an Earnings ESP of +111.38% and a Zacks Rank #2.
Shares of Wynn Resorts have gained 58% in the past year. WYNN’s earnings beat estimates in two of the trailing four quarters and missed twice, the average surprise being 0.6%.
Caesars Entertainment, Inc. (CZR - Free Report) has an Earnings ESP of +84.62% and a Zacks Rank #3.
Shares of Caesars Entertainment have declined 38.6% in the past year. CZR’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 16.2%.
Hyatt Hotels Corporation (H - Free Report) has an Earnings ESP of +56.57% and a Zacks Rank #3.
Shares of Hyatt Hotels have increased 20.4% in the past year. H’s earnings beat estimates in each of the trailing four quarters, the average surprise being 1,380.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.