Marriott International, based in Bethesda, Maryland, is a hospitality giant with a market cap of $74.9 billion. Operating hotels, resorts, and timeshares, Marriott crafts unforgettable experiences, from dining and spa retreats to weddings and events. With a legacy of comfort and service, this hospitality service provider is gearing up to unveil its Q3 earnings before the market opens on Monday, Nov. 4.
Ahead of the event, analysts expect MAR to report a profit of $2.31 per share, up 9.5% from $2.11 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on another occasion. Its fiscal Q2 adjusted EPS of $2.50, up 10.6% year over year, beat the consensus estimate marginally.
For the full year, analysts expect MAR to report EPS of $9.37, down 6.2% from $9.99 in fiscal 2023.
MAR has slightly outperformed the S&P 500’s ($SPX) 38.7% gains over the past 52 weeks, with shares up 39.1% during this period. Similarly, it outshined the Consumer Discretionary Select Sector SPDR Fund (XLY) 11.9% gains over the same time frame.
Shares of Marriott International outpaced the broader market over the past year, fueled by a stellar boost in Revenue per Available Room (RevPAR) due to a surge in travel demand. Aggressive expansion into midscale brands and international markets has propelled growth, with a development pipeline boasting around 3,500 properties and over 559,000 rooms in Q2.
The company’s loyalty program is another ace in its hand, finding innovative ways to engage members, including a partnership with Starbucks. Members linking accounts have far exceeded expectations, adding to the brand’s allure. Plus, owner preference remains rock solid, as Marriott inked deals for nearly 31,000 rooms in Q2 alone, with 75% located overseas.
The consensus opinion on MAR stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 23 analysts covering the stock, five recommend “Strong Buy,” one advises “Moderate Buy,” and 17 suggest “Hold.”
Although the stock currently trades above the mean price target of $255.18, the Street-high target price of $300 represents a potential upside of 14.5% from current price levels.
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