Shares of Marriott International Inc. (MAR) dropped 2.6% in premarket trading Thursday following the release of their third-quarter financial results. Despite beating profit expectations, the company’s outlook for the future was less positive.
- Net income rose to $752 million, or $2.51 per share, compared to $630 million, or $1.94 per share, in the same period last year.
- Adjusted earnings per share of $2.11 surpassed the FactSet consensus of $2.10.
- Revenue increased by 11.6% to $5.93 billion, outperforming the FactSet consensus of $5.86 billion.
- Revenue per available room (RevPAR) grew 8.8% to $129.73, exceeding expectations of $121.30.
Revised Guidance and Outlook
Marriott raised its full-year RevPAR growth guidance from 12-14% to a more optimistic range of 14-15%. However, for the fourth quarter, the company expects adjusted earnings per share to be between $2.04 and $2.13, falling below the current FactSet consensus of $2.19. The full-year guidance range of $8.50 to $8.59 is also below expectations of $8.63.
Over the past three months, Marriott’s stock has declined by 7.2%, while the S&P 500 has experienced a slightly higher decline of 6.1%.
Marriott International Inc. remains confident in its ability to navigate challenges and maintain its strong position in the industry.