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Factors Setting the Tone For Marriott (MAR) Q1 Earnings

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·4 min read
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Marriott International, Inc. MAR is scheduled to report first-quarter 2022 results on May 4, 2022, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 27.5%.

The Trend in Estimate Revision

The Zacks Consensus Estimate for the first-quarter bottom line is pegged at 94 cents per share, indicating a deterioration of 840% from 10 cents reported in the year-ago quarter.

For revenues, the consensus mark is pegged at $4,172 million, suggesting growth of 80.1% from the prior-year quarter’s reported figure.

Marriott International, Inc. Price and EPS Surprise

Marriott International, Inc. Price and EPS Surprise
Marriott International, Inc. Price and EPS Surprise

Marriott International, Inc. price-eps-surprise | Marriott International, Inc. Quote

Let's take a look at how things have shaped up in the quarter.

Key Factors to Note

Marriot’s first-quarter performance is likely to have benefited from a gradual increase in demand, unit expansion strategies, hotel conversions, new project developments and a loyalty program. With additional markets now open (post the Omicron scenario) and international travelers getting back on the road, Marriot’s business is likely to have picked up on strong leisure demand combined with improving business transient trends.

The rise in bookings coming from digital and other direct channels bode well for the company. During the previous quarter’s earnings call, the company stated that 52% of room nights globally and 58% of room nights in the United States and Canada were booked by Bonvoy members. Nevertheless, with an increased focus on members engagement coupled with a rise in digital sign-ups, the momentum is likely to have continued in the first quarter as well.

Focus on new account acquisitions, improved credit card spending and strong residential branding fees are likely to have driven the top line in the first quarter. The Zacks Consensus Estimate for base-management revenues and franchise fees is pegged at $207 million and $480 million, indicating year-over-year growth of 95.3% and 56.9%, respectively.

However, Omicron-induced travel restrictions (across some countries) and group cancellations are likely to have dented bookings in the first quarter. Although RevPAR and occupancy rate are likely to have improved sequentially, these are likely to have remained well below pre-pandemic levels.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Marriott this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: Marriott has an Earnings ESP of +3.84%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks Poised to Beat Earnings Estimates

Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat.

Golden Entertainment, Inc. GDEN has an Earnings ESP of +7.72% and a Zacks Rank #2.

Shares of Golden Entertainment have gained 40.4% in the past year. GDEN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 204.7%.

Callaway Golf Company ELY has an Earnings ESP of +7.22% and a Zacks Rank #3.

Shares of Callaway have declined 24.5% in the past year. ELY’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 1,047.2%.

Penn National Gaming, Inc. PENN has an Earnings ESP of +9.50% and a Zacks Rank #3.

Shares of Penn National have declined 19.4% in the past three months. PENN’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 6.9%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Marriott International, Inc. (MAR) : Free Stock Analysis Report

Penn National Gaming, Inc. (PENN) : Free Stock Analysis Report

Callaway Golf Company (ELY) : Free Stock Analysis Report

Golden Entertainment, Inc. (GDEN) : Free Stock Analysis Report

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