Marriott International Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Marriott International (NYSE:MAR) will unveil its latest earnings on Wednesday, October 3, 2012. Marriott International operates and franchises hotels and related lodging facilities throughout the world.

Marriott International Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 40 cents per share, a rise of 37.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 37 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 40 cents during the last month. For the year, analysts are projecting net income of $1.70 per share, a rise of 29.8% from last year.

Past Earnings Performance: Last quarter, the company met expectations by reporting profit of 42 cents per share last quarter. In the previous first quarter, the company beat estimates by one cent.

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Stock Price Performance: Between August 1, 2012 and September 27, 2012, the stock price had risen $3.23 (8.9%), from $36.35 to $39.58. The stock price saw one of its best stretches over the last year between December 30, 2011 and January 12, 2012, when shares rose for nine straight days, increasing 16% (+$4.68) over that span. It saw one of its worst periods between September 14, 2012 and September 26, 2012 when shares fell for nine straight days, dropping 6.2% (-$2.59) over that span.

Wall St. Revenue Expectations: Analysts predict a decline of 7.7% in revenue from the year-earlier quarter to $2.65 billion.

A Look Back: In the second quarter, profit rose 5.9% to $143 million (42 cents a share) from $135 million (37 cents a share) the year earlier, meeting analyst expectations. Revenue fell 6.6% to $2.78 billion from $2.97 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 8.1% in the first quarter and dropped again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.51 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

Analyst Ratings: With 10 analysts rating the stock a buy, none rating it a sell and nine rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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