The 10-second takeaway
For the quarter ended March 31 (Q1), Marriott International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share increased significantly.
Margins contracted across the board.
Marriott International notched revenue of $3.14 billion. The 17 analysts polled by S&P Capital IQ expected revenue of $2.93 billion on the same basis. GAAP reported sales were much higher than the prior-year quarter's $517.0 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 $0.43. The 26 earnings estimates compiled by S&P Capital IQ predicted $0.40 per share. GAAP EPS of $0.43 for Q1 were 43% higher than the prior-year quarter's $0.30 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 12.9%, much worse than the prior-year quarter. Operating margin was 7.2%, much worse than the prior-year quarter. Net margin was 4.3%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.03 billion. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $12.55 billion. The average EPS estimate is $2.01.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 321 members out of 459 rating the stock outperform, and 138 members rating it underperform. Among 120 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 94 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 $43.67.
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