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Bethesda, Maryland-based Marriott International, Inc. (MAR) operates, franchises, and licenses hotel, residential, timeshare, and other lodging properties. Valued at $69.67 billion by market cap, the company offers accommodations, lodging, dining, spa, weddings, meetings, events, and recreational facilities. The hospitality service provider is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Wednesday, Jul. 31.
Ahead of the event, analysts expect MAR to report a profit of $2.49 per share on a diluted basis, up 10.2% from $2.26 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on another occasion. During the quarter, the company added roughly 46,000 net rooms, including approximately 37,000 rooms, under its agreement with MGM Resorts International.
For the full year, analysts expect MAR to report EPS of $9.56, down 4.3% from $9.99 in fiscal 2023.
MAR stock has outperformed the S&P 500’s ($SPX) 22.6% gains over the past 52 weeks, with shares up 24.9% during this period. Similarly, it outshined the Consumer Disc ETF Vanguard’s (VCR) 11.9% gains over the same time frame.
MAR’s overall performance can be attributed to its strong growth in Revenue per Available Room (RevPAR) due to robust travel trends. The company has been aggressively expanding, particularly in midscale brands and international markets. At the end of the first quarter, its worldwide development pipeline amounted to over 3,400 properties and nearly 547,000 rooms. Its digital transformation initiatives have helped improve operational efficiency and customer engagement.
On May 1, MAR reported its Q1 results. Its adjusted EPS of $2.13 fell short of Wall Street expectations of $2.17. The company’s revenue was $5.98 billion, exceeding Wall Street forecasts of $5.97 billion. For Q2, MAR expects its adjusted EPS to be between $2.43 and $2.48. The company expects full-year adjusted EPS to be between $9.31 and $9.65. MAR shares closed down marginally on the day the results were released but have been on an uptrend since then.
Analysts’ consensus opinion on MAR stock is neutral, with a “Hold” rating overall. Out of 22 analysts covering the stock, three advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and 18 give a “Hold.” The average analyst price target for MAR is $247.88, indicating a marginal potential upside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
