Marriott EPS Expected to Decline Before Q4 Earnings Release

Marriott International faces challenges as EPS is projected to drop 33.3% year-over-year for Q4. Analysts show cautious optimism despite missed estimates in Q3 and lowered 2024 guidance. Investors are closely watching the upcoming earnings announcement.

Date: 18-01-2025

AI Rating: 5

Profit Margins: The text indicates a significant decline in anticipated earnings per share (EPS) for Marriott International. In Q4, the expected EPS is $2.38, which is a 33.3% decrease compared to the prior year's $3.57. Moreover, the forecast for the fiscal year 2024 projects an EPS of $9.25, down 7.4% from $9.99 in fiscal 2023.

Earnings Performance: The context presents a mixed earnings performance, as Marriott has surpassed Wall Street's estimates in two of the last four quarters while failing to meet expectations in two others. For instance, in Q3, MAR missed the consensus EPS by 2.2%, indicating volatility in earnings performance which could affect investor sentiment.

Market Reaction: Following underwhelming Q3 results, which reported an adjusted EPS of $2.26 and revenues of $6.3 billion that fell below expectations, shares of MAR experienced a decline of 1.6% on Nov. 4. The reduction of its 2024 guidance further raised investor concerns, which could lead to a continued negative impact on stock prices.

Analyst Consensus: Despite the challenges, analysts maintain a cautiously optimistic view with a “Moderate Buy” rating overall. This could suggest potential opportunities for investors looking for long-term growth after the expected rebound to $10.66 EPS in fiscal 2025.

Stocks: MAR