We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Leisure Demand & Bookings to Aid Marriott (MAR) Q1 Earnings
Read MoreHide Full Article
Marriott International, Inc. (MAR - Free Report) is scheduled to release first-quarter 2024 results on May 1, 2024, before the opening bell. In the last reported quarter, the company registered an earnings surprise of 68.4%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the first-quarter bottom line is pegged at $2.17 per share, indicating growth of 3.8% from $2.09 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $6 billion, suggesting growth of 6.4% 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 first-quarter performance is likely to have benefited from pent-up leisure demand, solid global booking trends and unit expansion efforts. This, along with significant growth in Revenue per Available Room (RevPAR) and higher Average Daily Rate (ADR) driven by solid demand from small and medium-sized businesses, are likely to have fueled the company's first-quarter revenue growth. The company anticipates a 4-5% year-over-year increase in worldwide system-wide RevPAR for the first quarter.
We expect RevPAR in worldwide, international and U.S. and Canada markets to rise 4.3% to $121.4, 8.7% to $118.3 and 5.4% to $126.2, respectively, from the prior-year actuals. We also forecast Asia Pacific RevPAR to grow 13.3% to $129.9 from the year-earlier levels.
Expectations for sustained growth in broadening its global lodging portfolio, including ongoing discussions for projects like Citi Express in the Caribbean and Latin America and Four Points Express in Europe, are likely to have contributed to hotel openings during the first quarter.
Solid contributions from the Marriott Bonvoy loyalty program and asset-light business model initiative are likely to have aided the company’s top line in the to-be-reported quarter. Member acquisitions, collaborations within the Marriott Bonvoy ecosystem and co-branded credit cards are expected to have added to the positive outcomes. For the first quarter, the company expects gross fee revenues to range between $1,190 million and $1,205 million.
However, the challenging financing environment in the United States and Europe poses challenges to the execution of the company’s growth strategy. MAR predicts revenues from owned leases and other sources (net of expenses) to decline year over year owing to ongoing renovations on several owned properties and the transition of the CALA property from owned to managed status.
These factors, along with expenses related to MGM integration, are likely to have negatively impacted the bottom line in the to-be reported quarter. Marriott projects first-quarter adjusted EPS to be in the range of $2.12-$2.19.
Our take
Investors should consider holding onto Marriott’s shares due to its enduring strength, robust fundamentals and expansion strategies. With MAR’s shares having increased by 28% in the last six months compared with the industry's 28.2% rally, a cautious approach is advisable amid unclear market signals. Opting to refrain from initiating new positions in MAR during this period can help mitigate exposure to uncertainties, allowing investors to await a more opportune entry point or a clearer trajectory for the company's performance.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Marriott this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that's not the case here.
Earnings ESP: Marriott has an Earnings ESP of 0.00%. 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 post an earnings beat.
Fox Corporation (FOXA - Free Report) has an Earnings ESP of +8.73% and a Zacks Rank of 3 at present.
FOXA is expected to register a 23.4% increase in earnings for the to-be-reported quarter. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 71.1%.
DraftKings Inc. (DKNG - Free Report) currently has an Earnings ESP of +12.65% and a Zacks Rank of 3.
DKNG’s earnings for the to-be-reported quarter are expected to increase 67.8%. It reported better-than-expected earnings in two of the trailing four quarters and missed on the other two occasions, with a negative surprise of 57.1% on average.
Funko, Inc. (FNKO - Free Report) currently has an Earnings ESP of +6.90% and a Zacks Rank of 3.
FNKO’s earnings for the to-be-reported quarter are expected to increase 40.8%. It reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 42.8%.
Image: Bigstock
Leisure Demand & Bookings to Aid Marriott (MAR) Q1 Earnings
Marriott International, Inc. (MAR - Free Report) is scheduled to release first-quarter 2024 results on May 1, 2024, before the opening bell. In the last reported quarter, the company registered an earnings surprise of 68.4%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for the first-quarter bottom line is pegged at $2.17 per share, indicating growth of 3.8% from $2.09 reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $6 billion, suggesting growth of 6.4% 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 first-quarter performance is likely to have benefited from pent-up leisure demand, solid global booking trends and unit expansion efforts. This, along with significant growth in Revenue per Available Room (RevPAR) and higher Average Daily Rate (ADR) driven by solid demand from small and medium-sized businesses, are likely to have fueled the company's first-quarter revenue growth. The company anticipates a 4-5% year-over-year increase in worldwide system-wide RevPAR for the first quarter.
We expect RevPAR in worldwide, international and U.S. and Canada markets to rise 4.3% to $121.4, 8.7% to $118.3 and 5.4% to $126.2, respectively, from the prior-year actuals. We also forecast Asia Pacific RevPAR to grow 13.3% to $129.9 from the year-earlier levels.
Expectations for sustained growth in broadening its global lodging portfolio, including ongoing discussions for projects like Citi Express in the Caribbean and Latin America and Four Points Express in Europe, are likely to have contributed to hotel openings during the first quarter.
Solid contributions from the Marriott Bonvoy loyalty program and asset-light business model initiative are likely to have aided the company’s top line in the to-be-reported quarter. Member acquisitions, collaborations within the Marriott Bonvoy ecosystem and co-branded credit cards are expected to have added to the positive outcomes. For the first quarter, the company expects gross fee revenues to range between $1,190 million and $1,205 million.
However, the challenging financing environment in the United States and Europe poses challenges to the execution of the company’s growth strategy. MAR predicts revenues from owned leases and other sources (net of expenses) to decline year over year owing to ongoing renovations on several owned properties and the transition of the CALA property from owned to managed status.
These factors, along with expenses related to MGM integration, are likely to have negatively impacted the bottom line in the to-be reported quarter. Marriott projects first-quarter adjusted EPS to be in the range of $2.12-$2.19.
Our take
Investors should consider holding onto Marriott’s shares due to its enduring strength, robust fundamentals and expansion strategies. With MAR’s shares having increased by 28% in the last six months compared with the industry's 28.2% rally, a cautious approach is advisable amid unclear market signals. Opting to refrain from initiating new positions in MAR during this period can help mitigate exposure to uncertainties, allowing investors to await a more opportune entry point or a clearer trajectory for the company's performance.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Marriott this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that's not the case here.
Earnings ESP: Marriott has an Earnings ESP of 0.00%. 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 #3 at present. 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 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.
Fox Corporation (FOXA - Free Report) has an Earnings ESP of +8.73% and a Zacks Rank of 3 at present.
FOXA is expected to register a 23.4% increase in earnings for the to-be-reported quarter. It reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 71.1%.
DraftKings Inc. (DKNG - Free Report) currently has an Earnings ESP of +12.65% and a Zacks Rank of 3.
DKNG’s earnings for the to-be-reported quarter are expected to increase 67.8%. It reported better-than-expected earnings in two of the trailing four quarters and missed on the other two occasions, with a negative surprise of 57.1% on average.
Funko, Inc. (FNKO - Free Report) currently has an Earnings ESP of +6.90% and a Zacks Rank of 3.
FNKO’s earnings for the to-be-reported quarter are expected to increase 40.8%. It reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 42.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.