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.
Marriott (MAR) Q1 Earnings: Will RevPAR Growth Boost Sales?
Read MoreHide Full Article
Marriott International, Inc. (MAR - Free Report) is scheduled to report first-quarter 2018 results on May 8, after the closing bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 12%.
Q1 Expectations
The question lingering in investors’ minds now is whether Marriott will be able to deliver a positive earnings surprise in the quarter to be reported. The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.25, higher than $1.01 in the year-ago quarter. Of late, the company’s earnings estimates have been stable. In the fourth quarter of 2017, it witnessed earnings growth of 31.8% on a year-over-year basis.
Meanwhile, analysts polled by Zacks expect revenues of nearly $5,753 million, up 3.5% from the prior-year quarter.
Let’s delve deeper to find out how the company’s top and bottom line will shape up this earnings season.
Factors at Play
We believe Marriott’s top line in the first quarter is likely to be driven by decent RevPAR growth across both domestic and international markets, courtesy of increased scale and distribution post Starwood acquisition and strong leisure demand. Given a steady rise in business and leisure travel, and higher transaction volumes, Marriott is well-poised to grow in the near as well as long term. In the last reported quarter, worldwide, system-wide RevPAR rose 4.6%.
Increasing business and leisure travel backed by improving economic indicators and positive employment numbers along with strong transient demand is likely to boost Marriott’s performance in the first quarter. Rising North American business and large international exposure also bode well for the company.
Additionally, the company is consistently trying to expand its presence worldwide and capitalize on the demand for hotels in international markets. For 2018, it anticipates gross room additions of 7%, which is likely to continue building economics, scale, and consumer preference for its brands.
We expect higher RevPAR, solid cost controls and synergies from Starwood acquisition to contribute significantly to the company’s margin improvement, which in turn should boost EPS.
Marriott International Price, Consensus and EPS Surprise
Our proven model shows that Marriott is likely to beat earnings estimates this quarter. This is because the stock has the right combination of two ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Marriott has an Earnings ESP of +0.40% and a Zacks Rank #3.
Stocks to Consider
Here are a few other stocks from theRestaurant space that investors may consider as our model shows that they also have the right combination of elements to post an earnings beat this quarter:
Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank of 3.
Del Taco has an Earnings ESP of +10.00% and a Zacks Rank #2.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Image: Bigstock
Marriott (MAR) Q1 Earnings: Will RevPAR Growth Boost Sales?
Marriott International, Inc. (MAR - Free Report) is scheduled to report first-quarter 2018 results on May 8, after the closing bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 12%.
Q1 Expectations
The question lingering in investors’ minds now is whether Marriott will be able to deliver a positive earnings surprise in the quarter to be reported. The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.25, higher than $1.01 in the year-ago quarter. Of late, the company’s earnings estimates have been stable. In the fourth quarter of 2017, it witnessed earnings growth of 31.8% on a year-over-year basis.
Meanwhile, analysts polled by Zacks expect revenues of nearly $5,753 million, up 3.5% from the prior-year quarter.
Let’s delve deeper to find out how the company’s top and bottom line will shape up this earnings season.
Factors at Play
We believe Marriott’s top line in the first quarter is likely to be driven by decent RevPAR growth across both domestic and international markets, courtesy of increased scale and distribution post Starwood acquisition and strong leisure demand. Given a steady rise in business and leisure travel, and higher transaction volumes, Marriott is well-poised to grow in the near as well as long term. In the last reported quarter, worldwide, system-wide RevPAR rose 4.6%.
Increasing business and leisure travel backed by improving economic indicators and positive employment numbers along with strong transient demand is likely to boost Marriott’s performance in the first quarter. Rising North American business and large international exposure also bode well for the company.
Additionally, the company is consistently trying to expand its presence worldwide and capitalize on the demand for hotels in international markets. For 2018, it anticipates gross room additions of 7%, which is likely to continue building economics, scale, and consumer preference for its brands.
We expect higher RevPAR, solid cost controls and synergies from Starwood acquisition to contribute significantly to the company’s margin improvement, which in turn should boost EPS.
Marriott International Price, Consensus and EPS Surprise
Marriott International Price, Consensus and EPS Surprise | Marriott International Quote
What Does the Zacks Model Unveil?
Our proven model shows that Marriott is likely to beat earnings estimates this quarter. This is because the stock has the right combination of two ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Marriott has an Earnings ESP of +0.40% and a Zacks Rank #3.
Stocks to Consider
Here are a few other stocks from the Restaurant space that investors may consider as our model shows that they also have the right combination of elements to post an earnings beat this quarter:
Ruth's Hospitality Group, Inc. has an Earnings ESP of +1.70% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank of 3.
Del Taco has an Earnings ESP of +10.00% and a Zacks Rank #2.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>