Marriott (MAR) Q4 Earnings Beat Estimates, Revenues Miss
Zacks Investment Research | Feb 26, 2020 09:30PM ET
Marriott International, Inc. (NASDAQ:MAR) reported mixed fourth-quarter 2019 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. Following the quarterly results, not much movement was witnessed in the company’s share price in the after-hour trading session on Feb 26.
Adjusted earnings of $1.57 per share beat the Zacks Consensus Estimate of $1.46 and improved 9% year over year. The company’s earnings in the quarter included a gain of 32 cents from an asset sale, which was partially offset by 26 cents thanks to asset impairments.
Total revenues of $5,371 million lagged the consensus mark of $5,515 million. However, the top line also improved 1.6% on a year-over-year basis.
At the end of 2019, Marriott's development pipeline totaled roughly 3,050 hotels, with approximately 515,000 rooms. Further, nearly 220,000 pipeline rooms were under construction.
RevPAR & Margins
In the quarter under review, revenue per available room (RevPAR) for worldwide comparable system-wide properties increased 1.1% in constant dollars (up 0.8% in actual dollars), driven by 0.8% increase in occupancy. However, average daily rate (ADR) declined 0.1%.
Comparable system-wide RevPAR in North America grew 0.9% in constant dollars (up 0.9% in actual dollars) owing to a 0.3% gain in ADR and 0.4% increase in occupancy.
On a constant-dollar basis, international comparable system-wide RevPAR rose 1.5% (down 1% in actual dollars), owing to a 1.3% rise in occupancy. The metric was partially offset by a 0.3% decline in ADR.
Meanwhile, worldwide comparable company-operated house profit margins increased 20 basis points (bps) on robust cost control and synergies from the Starwood acquisition, negated by marginal growth in RevPAR and increase in wages.
North American comparable company-operated house profit margins expanded 10 bps. Moreover, house profit margins for international comparable company-operated house profit margins increased 30 bps.
Total expenses were down 5% year over year to $5,097 million, primarily due to a decline in Reimbursed expenses.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to $901 million, up 4% with the year-ago figure.
Marriott International, Inc. Price, Consensus and EPS Surprise
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