Marriott International (MAR) reported a 0.4% decline in earnings for the third quarter as higher costs and expenses partially offset lower income taxes provision. The bottom line came in above analysts’ expectations while the top line missed consensus estimates. Following this, the stock inched down over 4% in the after-hours trading.
Net income declined 0.4% to $483 million while earnings increased 7% to $1.38 per share helped by lower weighted average diluted shares. Adjusted EPS soared 62% to $1.70.
Total revenues decreased 1% to $5.05 billion. The results were positively impacted by a 14% growth in base management and franchise fees. This was due to higher revenue per available room (RevPAR), unit growth, and higher credit card and residential branding fees.
Comparable systemwide constant dollar RevPAR rose 1.9% worldwide, 5.4% outside North America and 0.6% in North America. The company added more than 18,000 rooms during the third quarter, including over 1,500 rooms converted from competitor brands and about 10,000 rooms in international markets.
At quarter-end, Marriott’s worldwide development pipeline increased to roughly 471,000 rooms, including nearly 50,000 rooms approved, but not yet subject to signed contracts.
Looking ahead into the fourth quarter, the company expects gross fee revenues in the range of $900 million to $910 million and operating income in the range of $665 million to $680 million. Earnings are predicted to be in the range of $1.37 to $1.41 per share.
For the full year 2018, Marriott now predicts gross fee revenues in the range of $3.628 billion to $3.638 billion and operating income in the range of $2.741 billion to $2.756 billion. Earnings are anticipated to be between $6.15 and $6.18 per share. For 2018, the company sees the number of rooms to increase nearly 7% gross while room deletions should total nearly 2%, resulting in net rooms growth of roughly 5% for the year.
For the full year 2019, the company anticipates gross room additions to increase at a rate similar to 2018, but deletions should moderate to 1% to 1.5% for the year, resulting in net rooms growth acceleration to roughly 5.5%.
Shares of Marriott ended Monday’s regular session down 0.21% at $120.68 on the Nasdaq. The stock has fallen over 11% in the year so far and 0.72% in the past year.
On the heels of lawmakers moving closer to passing the stimulus bill, inflations concerns gripped the market after Federal Reserve chief Jerome Powell at a meeting said the reopening would
Though the retail boom triggered by the pandemic was estimated to be short-lived initially, the shopping spree continued as customers stocked up on essential items, concerned about the persistent market
Shares of Gap Inc. (NYSE: GPS) were up 5.8% in afternoon hours on Friday. The stock has gained 103% over the past 12 months. Gap reported mixed results for the