The 10-second takeaway
For the quarter ended Dec. 28 (Q4), Marriott International beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. GAAP earnings per share expanded significantly.
Gross margins expanded, operating margins shrank, net margins shrank.
Marriott International logged revenue of $3.76 billion. The 16 analysts polled by S&P Capital IQ wanted to see sales of $3.65 billion on the same basis. GAAP reported sales were much higher than the prior-year quarter's $1.01 billion.
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 $0.56. The 25 earnings estimates compiled by S&P Capital IQ predicted $0.55 per share. GAAP EPS of $0.56 for Q4 were 33% higher than the prior-year quarter's $0.42 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 93.3%, 1,160 basis points better than the prior-year quarter. Operating margin was 8.2%, 4,830 basis points worse than the prior-year quarter. Net margin was 4.8%, 920 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.90 billion. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $12.64 billion. The average EPS estimate is $2.03.
The stock has a one-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 129 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 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 $41.67.
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