The 10-second takeaway
For the quarter ended March 23 (Q1), Marriott International missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share expanded significantly.
Margins increased across the board.
Marriott International booked revenue of $2.55 billion. The 15 analysts polled by S&P Capital IQ hoped for a top line of $2.61 billion on the same basis. GAAP reported sales were 34% lower than the prior-year quarter's $779.0 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 $0.30. The 23 earnings estimates compiled by S&P Capital IQ predicted $0.29 per share. GAAP EPS of $0.30 for Q1 were 15% higher than the prior-year quarter's $0.26 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 62.3%, 1,740 basis points better than the prior-year quarter. Operating margin was 33.8%, 930 basis points better than the prior-year quarter. Net margin was 20.1%, 710 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.82 billion. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $11.80 billion. The average EPS estimate is $1.63.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 322 members out of 455 rating the stock outperform, and 133 members rating it underperform. Among 124 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 give Marriott International a green thumbs-up, and 23 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 $38.59.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.