Here's What Key Metrics Tell Us About Marriott (MAR) Q3 Earnings

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For the quarter ended September 2024, Marriott International (MAR) reported revenue of $6.26 billion, up 5.5% over the same period last year. EPS came in at $2.26, compared to $2.11 in the year-ago quarter.

The reported revenue represents a surprise of -0.45% over the Zacks Consensus Estimate of $6.28 billion. With the consensus EPS estimate being $2.31, the EPS surprise was -2.16%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Marriott performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Comparable Systemwide International Properties - Worldwide - REVPAR: 132 versus the three-analyst average estimate of 135.

  • Comparable Systemwide International Properties - Worldwide - REVPAR Growth Rate: 3% versus 3.6% estimated by three analysts on average.

  • Rooms - Franchised: 1,074,361 versus the two-analyst average estimate of 1,056,732.

  • Rooms - Timeshare: 22,750 versus the two-analyst average estimate of 22,820.

  • Revenues- Contract investment amortization: -$26 million compared to the -$25.13 million average estimate based on seven analysts. The reported number represents a change of +13% year over year.

  • Revenues- Gross fee revenues: $1.28 billion versus $1.29 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +7.2% change.

  • Revenues- Net fee revenues: $1.26 billion versus $1.26 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +7.1% change.

  • Revenues- Owned, leased, and other revenue: $381 million versus the seven-analyst average estimate of $369.56 million. The reported number represents a year-over-year change of +5%.

  • Revenues- Franchise fees: $812 million versus $821.05 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +8.6% change.

  • Revenues- Incentive management fees: $159 million versus $144.49 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +11.2% change.

  • Revenues- Cost reimbursements: $4.62 billion versus $4.62 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +5.2% change.

  • Revenues- Base management fees: $312 million versus the seven-analyst average estimate of $319.62 million. The reported number represents a year-over-year change of +2%.