The 10-second takeaway
For the quarter ended Dec. 30 (Q4), Marriott International missed slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved slightly, and GAAP earnings per share shrank.
Gross margins improved, operating margins improved, and net margins dropped.
Marriott International booked revenue of $3.69 billion. The 14 analysts polled by S&P Capital IQ hoped for revenue of $3.76 billion on the same basis. GAAP reported sales were 1.4% higher than the prior-year quarter's $3.64 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.46. The 21 earnings estimates compiled by S&P Capital IQ predicted $0.47 per share on the same basis. GAAP EPS of $0.42 for Q4 were 6.7% lower than the prior-year quarter's $0.45 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 22.3%, 930 basis points better than the prior-year quarter. Operating margin was 15.5%, 910 basis points better than the prior-year quarter. Net margin was 3.8%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.58 billion. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $11.81 billion. The average EPS estimate is $1.59.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 323 members rating the stock outperform, and 138 members rating it underperform. Among 130 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 102 give Marriott International a green thumbs-up, and 28 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 $35.42.
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