Marriott International Inc (NASDAQ: MAR) reported strong Q4 results and announced its 2017 guidance ahead of expectations. The key takeaways from the print could boost Marriott’s stock “and potentially the group” on February 16, Canaccord Genuity’s Ryan Meliker said in a report. He maintains a Buy rating on the company, with a price target of $94.
Marriott reported adjusted EPS at $0.85, in line with the consensus estimate. Adjusted EBITDA was reported at $756 million, above the consensus expectation of $689 million. Total fees came in at $713 million, higher than the consensus of $703 million.
Worldwide System-wide RevPAR rose 0.3 percent, with North America up 1.1 percent, better than the consensus expectations of 0 percent for worldwide and 0.5 percent for North America, Meliker noted.
Marriott bought back 4.3 million shares during Q4 for a total of $348 million, significantly ahead of Canaccord Genuity’s estimate of $210 million.
“Excluding the impact of asset sales, MAR expects to return $1.5–2.0 billion to shareholders in 2017 in the form of dividends and share repurchases,” Meliker wrote.
Marriott guided to Q1 RevPAR growth of 1-3 percent, better than the consensus expectation of +2.1 percent, and EPS of $0.87–$0.91, higher than the consensus of $0.85.
Related Link: 3 Reasons Marriott Is MKM's Top Pick For 2017
For 2017, the company raised its projection for constant currency RevPAR growth by 50 basis points on both ends to 0.5–2.5 percent for worldwide, 0–2 percent for North America and 1–3 percent for international. Adjusted EBITDA guidance came in at $3,075 million–$3,175 million, higher than the consensus of $3,015 million, and adjusted EPS of $3.79–$3.97, versus consensus of $4.03.
Image Credit: By Coolcaesar at the English language Wikipedia, CC BY-SA 3.0, via Wikimedia Commons
Latest Ratings for MAR
|Dec 2016||MKM Partners||Upgrades||Neutral||Buy|
|Nov 2016||Evercore ISI Group||Downgrades||Buy||Hold|
|Sep 2016||Goldman Sachs||Initiates Coverage on||Buy|
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