Global hospitality company Marriott (NASDAQ: MAR) will be reporting earnings this Monday before market open. Here’s what to expect.
Marriott met analysts’ revenue expectations last quarter, reporting revenues of $6.65 billion, up 6.2% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EBITDA estimates.
Is Marriott a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Marriott’s revenue to grow 6.9% year on year, improving from the 4.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Marriott has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Marriott’s peers in the consumer discretionary - travel and vacation providers segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Delta delivered year-on-year revenue growth of 18.7%, beating analysts’ expectations by 3.9%, and Frontier reported revenues up 37.7%, topping estimates by 4.6%. Delta traded down 3.2% following the results while Frontier was up 12%.
Read our full analysis of Delta’s results here and Frontier’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the consumer discretionary - travel and vacation providers stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.4% on average over the last month. Marriott is down 1.5% during the same time and is heading into earnings with an average analyst price target of $384.83 (compared to the current share price of $373.25).
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