The 10-second takeaway
For the quarter ended June 15 (Q2), Marriott International missed slightly on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share improved.
Margins shrank across the board.
Marriott International recorded revenue of $2.78 billion. The 15 analysts polled by S&P Capital IQ hoped for revenue of $2.82 billion on the same basis. GAAP reported sales were much higher than the prior-year quarter's $856.0 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 $0.42. The 24 earnings estimates compiled by S&P Capital IQ averaged $0.42 per share. GAAP EPS of $0.42 for Q2 were 14% higher than the prior-year quarter's $0.37 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 14.5%, 3,120 basis points worse than the prior-year quarter. Operating margin was 8.8%, 1,830 basis points worse than the prior-year quarter. Net margin was 5.2%, 1,060 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.65 billion. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $11.58 billion. The average EPS estimate is $1.64.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 323 members out of 456 rating the stock outperform, and 133 members rating it underperform. Among 120 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 96 give Marriott International a green thumbs-up, and 24 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 $40.80.
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