The 10-second takeaway
For the quarter ended June 30 (Q2), Marriott International beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share grew significantly.
Gross margins grew, operating margins dropped, net margins shrank.
Marriott International reported revenue of $3.26 billion. The 19 analysts polled by S&P Capital IQ foresaw revenue of $3.21 billion on the same basis. GAAP reported sales were much higher than the prior-year quarter's $606.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.57. The 31 earnings estimates compiled by S&P Capital IQ predicted $0.57 per share. GAAP EPS of $0.57 for Q2 were 36% higher than the prior-year quarter's $0.42 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 94.0%, much better than the prior-year quarter. Operating margin was 8.6%, much worse than the prior-year quarter. Net margin was 5.5%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.09 billion. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $12.75 billion. The average EPS estimate is $2.03.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 329 members out of 467 rating the stock outperform, and 138 members rating it underperform. Among 121 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 95 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 $44.92.
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