Global hospitality company Marriott (NASDAQ: MAR) will be reporting earnings this Tuesday before the bell. Here’s what investors should know.
Marriott beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $6.26 billion, up 4.8% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ adjusted operating income estimates but EBITDA guidance for next quarter missing analysts’ expectations.
Is Marriott a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Marriott’s revenue to grow 3.5% year on year to $6.66 billion, slowing from the 6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.62 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 6 downward revisions over the last 30 days (we track 12 analysts). Marriott has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Marriott’s peers in the travel and vacation providers segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Carnival delivered year-on-year revenue growth of 9.5%, beating analysts’ expectations by 1.7%, and Delta reported flat revenue, topping estimates by 1.5%. Carnival traded up 5.9% following the results while Delta was also up 11.9%.
Read our full analysis of Carnival’s results here and Delta’s results here.
Investors in the travel and vacation providers segment have had steady hands going into earnings, with share prices flat over the last month. Marriott is down 7.6% during the same time and is heading into earnings with an average analyst price target of $281.28 (compared to the current share price of $257.15).
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