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Marriott (MAR) Q3 Earnings Beat Estimates, Revenues Miss

Marriott International, Inc. MAR reported third-quarter 2020 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. However, both the top and bottom lines declined on a year-over-year basis. Following the results, the company’s shares declined 1% in pre-market trading session.

In the quarter under review, Marriott’s adjusted earnings per share was 6 cents, comparing favorably with the Zacks Consensus Estimate of a loss of 7 cents. In the prior-year quarter, the company had reported adjusted earnings of $1.47 per share. Although the coronavirus pandemic continues to hurt the company’s results, it is witnessing rise in demand globally. The company stated that Greater China has been leading the recovery.

Quarterly revenues of $2,254 million missed the consensus mark of $2,395 million. Moreover, the top line declined 57.3% on a year-over-year basis. Base management and Franchise fee were $87 million and $279 million, down 70% and 47% year over year, respectively.

RevPAR & Margins

In the quarter under review, revenue per available room (RevPAR) for worldwide comparable system-wide properties fell 65.9% in constant dollars (down 65.9% in actual dollars) due to 40.8% and 26.4% decline in occupancy and average daily rate (ADR), respectively. These metrics were impacted by the coronavirus pandemic.

Comparable system-wide RevPAR in North America fell 65.4% in constant dollars (down 65.4% in actual dollars) due to 27.6% decline in ADR and 40.3% fall in occupancy.

On a constant-dollar basis, international comparable system-wide RevPAR slumped 67.4% (down 67.3% in actual dollars) due to decline of 43.5% and 25.5% in occupancy and ADR, respectively.

Total expenses fell 57% year over year to $2,002 million, primarily due to decline in Reimbursed expenses.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to $442 million, down 46% year over year.

Balance sheet

At the end of the third quarter, Marriott's total debt amounted to $9.4 billion, compared with $10.9 billion in December 2019.

During the quarter, the company’s cash balances totaled $1.5 billion compared with $225 million in December 2019.

Owing to uncertainty revolving around the crisis, the company temporarily suspended its share repurchase programs and dividend payouts.

Unit Developments

At the end of the third-quarter 2020, Marriott's development pipeline totaled nearly 2,900 hotels, with approximately 496,000 rooms. Further, nearly 228,000 rooms were under construction.

Zacks Rank & Peer Releases

Marriott currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hilton Worldwide Holdings Inc. HLT reported third-quarter 2020 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. However, the metrics declined sharply year over year. Adjusted earnings per share of 6 cents beat the Zacks Consensus Estimate of a loss of 9 cents. However, the bottom line declined from $1.05 reported in the prior-year quarter. Quarterly revenues of $933 million surpassed the consensus mark of $929 million but slumped 61% year over year.

Hyatt Hotels Corporation H reported dismal third-quarter 2020 results, wherein earnings and revenues not only missed the Zacks Consensus Estimate but also declined sharply on a year-over-year basis. The company reported adjusted loss per share of $1.48, wider than the Zacks Consensus Estimate of a loss of $1.25. In the prior-year quarter, the company had reported adjusted earnings per share of 37 cents. Revenues of $399 million missed the consensus mark of $449 million and declined 67.2% from a year ago.

Marriott Vacations Worldwide Corporation VAC reported third-quarter 2020 results, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same. However, the top and bottom line declined year over year due to the pandemic. During the quarter, adjusted loss per share came in at 81 cents, wider than the Zacks Consensus Estimate of a loss of 60 cents. In the prior-year quarter, the company reported adjusted earnings of $1.97 per share. Revenues of $649 million beat the consensus mark of $609 million by 6.6%. However, the top line declined 39.1% on a year-over-year basis.

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Marriott International, Inc. (MAR): Free Stock Analysis Report
 
Hyatt Hotels Corporation (H): Free Stock Analysis Report
 
Marriot Vacations Worldwide Corporation (VAC): Free Stock Analysis Report
 
Hilton Worldwide Holdings Inc. (HLT): Free Stock Analysis Report
 
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