雅虎香港財經 Marriott (MAR) Q1 Earnings Miss Estimates, Revenues Surpass
Marriott International, Inc. MAR reported mixed first-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and the bottom line increased on a year-over-year basis.
During the quarter, the company reported benefits from strong revenue per available room (RevPAR) gains, net rooms growth and an asset-light business model. Also, strong contributions from the group business added to the positives. The company reported strength in The Marriott Bonvoy loyalty program, comprising 203 million members as of the first-quarter end. It also emphasized the launch of the MGM Collection, integrating nearly 37,000 rooms into the company's portfolio.
Earnings & Revenue Discussion
In the quarter under review, Marriott’s adjusted earnings per share (EPS) were $2.13, missing the Zacks Consensus Estimate of $2.17. It reported adjusted earnings of $2.09 per share in the prior-year quarter.
Marriott International, Inc. Price, Consensus and EPS Surprise
Marriott International, Inc. price-consensus-eps-surprise-chart | Marriott International, Inc. Quote
Quarterly revenues of $5.97 billion beat the consensus mark by 0.1%. The top line moved up 6.4% on a year-over-year basis.
Revenues from Base management and Franchise fees came in at $313 million and $688 million, up 6.8% and 7.7% year over year, respectively. Increased RevPAR and unit growth primarily backed this uptick. We estimate the metrics to be $318.3 million and $677.1 million, respectively.
Incentive management fees during the quarter reached $209 million, reflecting a rise of 4% from $201 million reported in the prior-year quarter.
RevPAR & Margins
RevPAR for worldwide comparable system-wide properties rose 4.2% (in constant dollars) year over year. The upside was primarily backed by a 2.8% increase in Average Daily Rate (ADR). Occupancy improved by 0.9% from 2023 levels.
Comparable system-wide RevPAR in the Asia Pacific (excluding China) increased 16.5% (in constant dollars) year over year. Occupancy moved up 5.1% year over year, while ADR rose 8.2% from 2023 levels. Comparable system-wide RevPAR in Greater China grew 6% year over year.
On a constant-dollar basis, international comparable system-wide RevPAR increased 11.1% year over year. Occupancy and ADR gained 3.4% and 5.3% year over year, respectively. Comparable system-wide RevPAR in Europe gained 7.6% year over year. RevPAR in the Caribbean & Latin America rose 11.6% from 2023 levels.
Total expenses during the quarter increased 9.4% year over year to $5.1 billion, primarily owing to a rise in reimbursed expenses. Our estimate was pegged at $4.9 billion.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to $1.14 billion, up 4% from the prior-year quarter. We predicted the metric to be $1.13 billion.
Balance Sheet
At the first-quarter end, Marriott's total debt totaled $12.7 billion compared with $11.9 billion in the previous quarter. Cash and cash equivalents, as of Mar 31, 2024, came in at $0.4 billion compared with $0.3 billion in the previous quarter.
Year to date (through Apr 26), the company repurchased 6.2 million shares worth $1.5 billion.
Unit Developments
At the end of first-quarter 2024, Marriott's development pipeline totaled 3,419 hotels, with approximately 547,000 rooms. More than 202,000 rooms were under construction.
Outlook
For second-quarter 2024, management anticipates gross fee revenues in the range of $1.34-$1.36 billion. Adjusted EBITDA is expected between $1.29 billion and $1.31 billion. MAR estimates second-quarter EPS between $2.43 and $2.48.
For the second quarter, the company projects worldwide system-wide RevPAR to increase 4-5% year over year.
For 2024, MAR forecasts gross fee revenues in the range of $5.18-$5.28 billion. General and administrative expenses are projected in the range of $1.02-$1.04 billion. Adjusted EBITDA is expected between $4.96-$5.1 billion. It envisions 2024 EPS in the band of $9.31-$9.65, up from the prior expectation of $9.18-$9.52.
Zacks Rank
Marriott currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Consumer Discretionary Releases
Boyd Gaming Corporation BYD reported mixed first-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and the bottom line declined on a year-over-year basis.
During the quarter, the company’s performance was impacted by January's severe winter weather in the Midwest and South and a softer Las Vegas locals market. The combined effect of these challenges fell within the anticipated range, aligning with earlier projections of $20-$25 million in EBITDAR for 2024.
Royal Caribbean Cruises Ltd. RCL reported stellar first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.
RCL benefited from robust demand, strong pricing (on closer-in demand) and solid onboard spending. The company also raised its 2024 adjusted EPS guidance on the back of an exceptional WAVE season and continued strong demand.
Hilton Worldwide Holdings Inc. HLT reported solid first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate and rising year over year.
The company's performance was backed by notable improvements in revenue per available room (RevPAR), attributed to higher occupancy rates and average daily rates (ADR). It also benefited from its fee-based business model and robust development initiatives. HLT maintained its momentum in signings, starts and openings, reflecting a solid pipeline. Based on the growth trajectory observed thus far, the company is optimistic about sustaining the momentum in the near future.
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