Marriott Profit Tops Estimates; Q3 EPS Guidance Weak, But Lifts FY Outlook

(RTTNews) - Hotel operator Marriott International Inc (MAR) on Wednesday reported second-quarter net earnings of $240 million or $0.87 per share compared with $192 million or $0.64 per share last year.

Excluding items, adjusted earnings for the quarter were $0.82 per share compared with $0.71 per share a year ago.

On average, 23 analysts polled by Thomson Reuters estimated earnings of $0.81 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter were up 6 percent at $3.69 billion compared with $3.48 billion in the prior year. Sixteen analysts had a consensus revenue estimate of $3.73 billion for the quarter.

Marriott's RevPAR for worldwide comparable systemwide properties increased 5.3 percent in the second quarter, with this metric up 5.4 percent in North America and 4.5 percent internationally.

For the third quarter, the company forecasts earnings of $0.72 to $0.76 per share, while analysts expect $0.77 per share.

For the full year 2015, Marriott now expects earnings of $3.10 to $3.18 per share, from prior guidance of $3.00 to $3.12 per share. Analysts expect earnings of $3.08 per share.

Further, for the third quarter, the company expects comparable systemwide RevPAR on a constant dollar basis to increase 4 to 6 percent in North America, 3 to 5 percent outside North America and 4 to 6 percent worldwide.

For full year 2015, the company expects comparable systemwide RevPAR on a constant dollar basis to increase 5.5 to 6.5 percent in North America, 4.5 to 5.5 percent outside North America and 5.5 to 6.5 percent worldwide. Earlier, it expected an increase of 5 to 7 percent in North America, 4 to 6 percent outside North America and 5 to 7 percent worldwide.