Marriott Sees Q3 Earnings Below Market, Cuts FY24 Outlook; Stock Down In Pre-market

(RTTNews) - Marriott International Inc. (MAR), while reporting higher second-quarter earnings above the market, on Wednesday issued third-quarter earnings view below the Street. The company also trimmed fiscal 2024 forecast for earnings and gross fee revenues.

In pre-market activity on the Nasdaq, Marriott shares were losing around 4.4 percent to trade at $228.35.

The company said the updated annual outlook includes a narrowing of the RevPAR growth range for full year 2024, primarily as a result of a weaker operating environment in Greater China, as well as marginally softer expectations in the U.S. & Canada.

For the third quarter, the company expects adjusted earnings per share of $2.27 to $2.33, with gross fee revenues of $1.275 billion to $1.290 billion.

Analysts on average expect the company to report earnings of $2.38 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Comparable systemwide RevPAR growth is expected to be 3 percent to 4 percent in the quarter.

For fiscal 2024, the company now expects adjusted earnings per share of $9.23 to $9.40, with gross fee revenues of $5.13 billion to $5.18 billion.

The company previously expected earnings per share of $9.31 to $9.65 and gross fee revenues of $5.18 billion to $5.28 billion.

The Street is looking for earnings of $9.50 per share for the year.

Comparable systemwide RevPAR growth is expected to be 3 percent to 4 percent in the year, compared to previously expected growth of 3 percent to 5 percent.

In its second quarter, earnings increased from the same period last year and beat the Street estimates.

The company's earnings came in at $772 million, or $2.69 per share. This compares with $726 million, or $2.38 per share, in last year's second quarter.

Adjusted earnings were $716 million or $2.50 per share for the period. Analysts had expected the company to earn $2.47 per share.

The company's revenue for the quarter rose 6.0 percent to $6.439 billion from $6.075 billion last year.

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