The 10-second takeaway
For the quarter ended Sep. 7 (Q3), Marriott International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share grew.
Margins grew across the board.
Marriott International notched revenue of $2.73 billion. The 14 analysts polled by S&P Capital IQ predicted revenue of $2.65 billion on the same basis. GAAP reported sales were much higher than the prior-year quarter's $829.0 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 $0.44. The 24 earnings estimates compiled by S&P Capital IQ forecast $0.40 per share. GAAP EPS were $0.44 for Q3 versus -$0.52 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 12.6%, 830 basis points better than the prior-year quarter. Operating margin was 7.8%, 2,520 basis points better than the prior-year quarter. Net margin was 5.2%, 2,680 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.61 billion. On the bottom line, the average EPS estimate is $0.57.
Next year's average estimate for revenue is $11.60 billion. The average EPS estimate is $1.70.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 322 members out of 457 rating the stock outperform, and 135 members rating it underperform. Among 114 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 give Marriott International a green thumbs-up, and 26 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 $40.70.
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