Marriott International Increases Sales but Misses Revenue Estimates
Marriott International (NYS: MAR) reported earnings on July 11. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 15 (Q2), Marriott International missed slightly on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share improved.
Margins shrank across the board.
Marriott International recorded revenue of $2.78 billion. The 15 analysts polled by S&P Capital IQ hoped for revenue of $2.82 billion on the same basis. GAAP reported sales were much higher than the prior-year quarter's $856.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.42. The 24 earnings estimates compiled by S&P Capital IQ averaged $0.42 per share. GAAP EPS of $0.42 for Q2 were 14% higher than the prior-year quarter's $0.37 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 14.5%, 3,120 basis points worse than the prior-year quarter. Operating margin was 8.8%, 1,830 basis points worse than the prior-year quarter. Net margin was 5.2%, 1,060 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.65 billion. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $11.58 billion. The average EPS estimate is $1.64.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 323 members out of 456 rating the stock outperform, and 133 members rating it underperform. Among 120 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 96 give Marriott International a green thumbs-up, and 24 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Marriott International is outperform, with an average price target of $40.80.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.