Hotel Operator Marriott Slips After Mixed Q1 Earnings
Portfolio Pulse from Shivani Kumaresan
Marriott International Inc (NASDAQ:MAR) reported mixed Q1 FY24 earnings with a miss on adjusted EPS at $2.13 versus the estimated $2.17, despite beating sales growth estimates with $5.98 billion. The company saw a 6.5% year-on-year sales growth and a 4.2% increase in worldwide RevPAR. Operating margin contracted from 16.9% to 14.7%. Marriott also announced the launch of MGM Collection with Marriott Bonvoy, adding nearly 37,000 rooms. The company raised its FY24 adjusted EPS outlook but remains below analyst expectations. Shares fell by 1.03% to $233.78.
May 01, 2024 | 2:46 pm
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Marriott International Inc reported mixed Q1 FY24 results with a slight miss on adjusted EPS and a beat on sales growth. The company also announced a strategic partnership with MGM Resorts International, adding nearly 37,000 rooms to its portfolio.
The miss on adjusted EPS despite beating sales estimates indicates operational challenges that could concern investors. The strategic partnership with MGM and raised EPS outlook show growth potential, but the immediate stock price reaction was negative, likely due to the EPS miss and the adjusted EPS outlook still being below analyst expectations.
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IMPORTANCE 90
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