Hotel franchisor Marriott International (MAR) reported stronger than expected earnings for the fourth quarter of 2018. However, the company’s stock dropped during the extended trading session Thursday after its revenues missed the estimates.
Adjusted profit climbed 32% year-over-year to $1.44 per share during the three-month period and surpassed estimates. Unadjusted earnings were $317 million or $0.92 per share, compared to $114 million or $0.31 per share in the fourth quarter of 2017.
At $5.29 billion, revenues were higher by 1% compared to the prior-year period. During the quarter, worldwide comparable system-wide RevPAR rose 1.3%. There was a 4% RevPAR growth outside North America and a 0.2% gain in North America. The company said it added around 80,000 rooms in the whole of 2018.
Adjusted profit climbed 32% year-over-year to $1.44 per share during the three-month period and surpassed estimates
“We are pleased that, just over two years since the acquisition, the integration of Starwood is nearly complete. With the announcement of our new loyalty brand, Marriott Bonvoy, just a few weeks ago, customers are enjoying the meaningful benefits of the combined company,” said Marriott CEO Arne Sorenson.
Looking ahead, the management expects North America RevPAR to grow between 1% and 2% in the first quarter and 1-3% in fiscal 2019. March-quarter gross fee revenue is expected to be in the range of $885 million to $905 million. For fiscal 2019, the company forecasts gross fee revenues between $3.83 billion and $3.91 billion.
First-quarter earnings are estimated to be in the range of $1.30 per share to $1.35 per share. The projected full-year earnings per share are $5.87 -$6.10.
Shares of Marriott International dropped about 2% following the earnings report Wednesday, after closing the regular session lower. The stock gained nearly 17% since the beginning of the year.