Marriott International Inc. Earnings Cheat Sheet: Swing to a Loss After Two Straight Profit Quarters

S&P 500 (NYSE:SPY) component Marriott International Inc. (NYSE:MAR) reported its results for the third quarter. Marriott International operates and franchises hotels and related lodging facilities throughout the world.

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Marriott International Earnings Cheat Sheet for the Third Quarter

Results: Reported a loss of $179 million (52 cents per diluted share) in the quarter. Marriott International Inc. had a net income of $83 million or 22 cents per share in the year earlier quarter.

Revenue: Rose 8.5% to $2.87 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: MAR reported adjusted net income of 29 cents per share. By that measure, the company beat the mean estimate of 27 cents per share. Analysts were expecting revenue of $2.82 billion.

Quoting Management: J.W. Marriott, Jr., Marriott International chairman and chief executive officer, said, “We were very pleased with our performance in the third quarter. Despite continued economic uncertainty, revenue per available room growth was very strong and adjusted EPS rose 32 percent.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 19.6% to $2.97 billion in the second quarter. The figure rose 5.6% in the first quarter from the year earlier and climbed 7.8% in the fourth quarter of the last fiscal year from the year-ago quarter.

MAR’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $135 million in the second quarter, a profit of $101 million in the first quarter and $173 million in the fourth of the last fiscal year.

The company beat estimates last quarter after being in line with expectations in the second quarter with net income of 37 cents per share.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 48 cents a share to 49 cents over the last ninety days. At $1.39 per share, the average estimate for the fiscal year has fallen from $1.41 ninety days ago.

Competitors to Watch: Starwood Hotels & Resorts Worldwide, Inc (NYSE:HOT), Wyndham Worldwide Corp. (NYSE:WYN), Hyatt Hotels Corporation (NYSE:H), Silverleaf Resorts, Inc. (NASDAQ:SVLF), Choice Hotels Intl., Inc. (NYSE:CHH), Gaylord Entertainment Co. (NYSE:GET), Bluegreen Corporation (NYSE:BXG), Red Lion Hotels Corp. (NYSE:RLH), and InterContinental Hotels Group PLC (NYSE:IHG).

Stock Performance: Shares of MAR were up 4% from the previous close.

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(Source: Xignite Financials)