Marriott International Inc. (MAR - Free Report) just released its third quarter fiscal 2016 financial results, posting adjusted diluted earnings of 91 cents per share and revenues of $3.9 billion. MAR is a #3 (Hold), and is down 4% to $68.25 per share in after-hours trading after its earnings report was released.
Beat earnings estimates. The company reported adjusted diluted earnings of 91 cents per share, surpassing the Zacks Consensus Estimate of 90 cents per share and increasing 17% year-over-year. This number excludes 65 cents from non-recurring items.
Matched revenue estimates. The company saw revenue figures of $3.9 billion, matching our estimate of $3.964 billion and growing 10.2% year-over-year. This number includes $168 million related to the eight days of Starwood’s results in the quarter.
Marriott’s acquisition of Starwood Hotels & Resorts Worldwide closed on September 23, 2016, and at the end of the quarter, Marriott had almost 1.6 million rooms open or in development. During the quarter, Marriott and Starwood together added more than 17,600 rooms, including roughly 1,600 rooms converted from competitor brands and nearly 8,600 rooms in international markets.
Third quarter 2016 adjusted net income totaled $235 million, a 12% increase over 2015 third quarter net income of $210 million.
"Looking forward to 2017, we expect systemwide constant dollar RevPAR for the combined portfolio will be flat to up 2 percent in North America, outside North America and worldwide. Our group booking pace at company-operated North American full-service hotels for 2017 is up 2 percent with about 70 percent of 2017 expected group business volume booked thus far,” said Arne M. Sorenson, president and chief executive officer of Marriott.
Here’s a graph that looks at Marriott’s price, consensus, and EPS surprise:
Marriott International, Inc. operates and franchises hotels under the Marriott, JW Marriott, The Ritz-Carlton, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Ramada International brand names; develops and operates vacation ownership resorts under the Marriott Vacation Club International, Horizons, The Ritz-Carlton Club and Marriott Grand Residence Club brands; operates Marriott Executive Apartments; provides furnished corporate housing through its Marriott ExecuStay division; and operates conference centers.
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