Marriott (MAR) Meets Q2 Earnings Estimates, Trims '19 View
Zacks Investment Research | Aug 05, 2019 10:11PM ET
Marriott International, Inc. (NASDAQ:MAR) reported mixed second-quarter 2019 results, wherein earnings matched the Zacks Consensus Estimate but revenues lagged the same. Notably, this marked the sixth straight quarter of revenue miss. Following the quarterly results, shares of the company declined 2.8% in the after-hours trading session on Aug 5.
Adjusted earnings of $1.56 per share, came in line with Zacks Consensus Estimate but decreased 9.3% year over year. The company’s earnings in the year-ago quarter include 26 cents gain from an asset sale.
Total revenues of $5,305 million missed the consensus mark of $5,531 million. The top line also declined 2% on a year-over-year basis.
RevPAR & Margins
In the quarter under review, RevPAR for worldwide comparable system-wide properties increased 1.2% in constant dollars (down 0.3% in actual dollars) driven by a 1.1% improvement in average daily rate (ADR). The metric was partially offset by a flat occupancy.
Comparable system-wide RevPAR in North America grew 0.7% in constant dollars (up 0.4% in actual dollars) owing to a 1.3% gain in ADR, partially overshadowed by a 0.5% decline in occupancy.
On a constant-dollar basis, international comparable system-wide RevPAR rose 2.8% (down 2.4% in actual dollars). Both occupancy rate and ADR improved 1.5% and 0.6%, respectively.
Meanwhile, worldwide comparable company-operated house profit margins decreased 10 bps as robust cost control and synergies from the Starwood acquisition were overshadowed by marginal growth in RevPAR and increase in wages.
North American comparable company-operated house profit margins contracted 50 basis points (bps). On the flip side, house profit margins for comparable company-operated properties outside North America expanded 30 bps.
Total expenses decreased 7% year over year to $4.9 billion mainly due to a decline in Owned, leased, and other expenses.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) summed $952 million, up 1% year over year.
Marriott International Price, Consensus and EPS Surprise
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