Valued at a market cap of $76.7 billion, Marriott International, Inc. (MAR) is a global leader in operating, franchising, and licensing hotels, residences, and timeshare properties. With an extensive portfolio of brands spanning luxury to economy segments, Marriott serves diverse travelers worldwide through names like JW Marriott, The Ritz-Carlton, and Courtyard by Marriott. MAR is expected to announce its fiscal Q4 earnings results on Tuesday, Feb. 11.
Ahead of this event, analysts expect the hotel company to report a profit of $2.38 per share, down 33.3% from $3.57 per share in the year-ago quarter. The company has surpassed Wall Street’s earnings estimates in two of the last four quarters while missing on two other occasions. In Q3, MAR missed the consensus EPS estimate by 2.2%.
For fiscal 2024, analysts expect the Bethesda, Maryland-based company to report an EPS of $9.25, down 7.4% from $9.99 in fiscal 2023. However, EPS is anticipated to rebound and grow 15.2% year-over-year to $10.66 in fiscal 2025.
Shares of MAR have risen 21.7% over the past 52 weeks, lagging behind both the S&P 500 Index’s ($SPX) 26.5% surge and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 33.1% return over the period.
On Nov. 4, Marriott International’s shares dropped 1.6%, driven by underwhelming Q3 results, including an adjusted EPS of $2.26 and $6.3 billion in revenues, both below expectations. Additionally, the company reduced its 2024 guidance, projecting adjusted EPS at $9.19–$9.27 and gross fee revenues at $5.1 billion – $5.2 billion, slightly under previous estimates. Despite positive trends like higher RevPAR and portfolio growth, these revisions raised investor concerns, leading to a decline in stock value.
Analysts’ consensus view on Marriott International’s stock is cautiously optimistic, with a “Moderate Buy” rating overall. Among 23 analysts covering the stock, five recommend “Strong Buy,” one suggests “Moderate Buy,” and 17 indicate “Hold.”
As of writing, MAR is trading below the average analyst price target of $282.81.
On the date of publication, Sohini Mondal 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. More news from Barchart