Marriott shares up 1.9% premarket as earnings and guidance shows travel recover intact

Marriott shares up 1.9% premarket as earnings and guidance shows travel recover intact

Marriott International Inc. shares MAR,
-0.81%
rose 1.9% premarket Tuesday, after the hotel operator beat estimates for the second quarter and offered upbeat guidance. Marriott posted net income of $678 million, or $2.06 a share, for the quarter, up from $422 million, or $1.28 a share, in the year-earlier period. Adjusted per-share earnings came to $1.80, ahead of the $1.57 FactSet consensus. Revenue rose to $5.338 billion from $3.149 billion a year ago, also ahead of the $4.924 billion FactSet consensus. The company said systemwide constant dollar RevPAR, or revenue per available room, rose 70.6% worldwide and 66.1% in the US and Canada. The company added about 17,000 rooms globally in the quarter. “Marriott’s second quarter results highlight consumers’ love for travel,” CEO Anthony Capuano said in a statement. “We have not seen signs of leisure travel abating, with leisure room nights in the region (US and Canada) more than 15 percent higher than second quarter 2019, and ADR meaningfully outpacing pre-pandemic levels. Europe also experienced notably strong RevPAR recovery, in large part due to the return of international visitors, with June RevPAR exceeding 2019,” he continued. Marriott is now expecting third-quarter adjusted EPS of $1.59 to $1.60, compared with a FactSet consensus of $1.59. It expects a full-year adjusted EPS of $6.33 to $6.59, compared with a FactSet consensus of $6.01. Shares are down 3.4% in the year to date, while the S&P 500 SPX,
-0.17%
has fallen 13.6%.

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