Marriott International, Inc. (MAR - Free Report) reported mixed first-quarter 2019 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues lagged the same. Notably, this marked the fifth straight quarter of revenue miss.
Adjusted earnings came in at $1.41 per share, outpacing the Zacks Consensus Estimate of $1.34 and increasing 5% year over year. The upside was driven by lower effective tax rate as well as increase in room rates.
Total revenues of $5,012 million missed the consensus mark of $5,117 million. However, the top line was almost flat with the prior-year quarter number.
RevPAR & Margins
In the quarter under review, RevPAR for worldwide comparable system-wide properties increased 1.1% in constant dollars (down 0.3% in actual dollars) driven by a 1.5% improvement in average daily rate (ADR). The metric was partially offset by a 0.3% fall in occupancy.
Comparable system-wide RevPAR in North America grew 0.8% in constant dollars (up 0.6% in actual dollars) owing to a 2% gain in ADR, partially overshadowed by a 0.8% decline in occupancy.
On a constant-dollar basis, international comparable system-wide RevPAR rose 1.9% (down 2.5% in actual dollars). Both occupancy rate and ADR improved 1.1% and 0.2%, respectively.
Meanwhile, worldwide comparable company-operated house profit margins were flat as robust cost control and synergies from the Starwood acquisition were overshadowed by marginal growth in RevPAR and increase in wages.
North American comparable company-operated house profit margins expanded 30 basis points (bps). On the flip side, house profit margins for comparable company-operated properties outside North America declined 30 bps.
Total expenses decreased 1% year over year to $4.5 billion mainly due to decline in Owned, leased, and other expenses.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) summed $821 million, up 7% year over year.
Marriott International Price, Consensus and EPS Surprise