Marriott International Earnings Beat Expectations

With an increase in profit, Marriott International MAR beat analysts' expectations in the second quarter. To figure out why, let's first dig into the numbers. Then we can look a bit deeper and see what action you can take. The Big Numbers: Marriott International posted an EPS above analyst expectations, though revenues fell short of predictions. The company reported EPS of 37 cents/share versus the 27 cents/share estimate and revenues of $2.68 billion versus the $3.02 billion estimate. EPS rose 19.4% while revenue climbed 8.1% from the same period last year. Revenue has risen the past four quarters on a year-over-year basis. Income: For the year, Marriott International reported net income of $1.16 per share. The company trumped analyst projections of $1.13 by 2.7%. According to the reported number, the company's income rose 13.4% from last year's levels. Official Comment: J.W. Marriott, Jr., Marriott International chairman and chief executive officer, said, "Around the world, we've never been more excited about our opportunities. Now in 71 countries, the Marriott International brand portfolio, already the broadest in the industry, is growing rapidly. We expect to add over 200 hotels to our system in 2011, leveraging the hospitality and local know-how of our associates with our global size, systems, and guest loyalty programs. Emerging markets provide especially attractive opportunities. In the past five years, we have increased our hotel distribution in Brazil, Russia, India and China at a 12 percent compound annual growth rate while tripling our development pipeline in those markets." Industry: The company's EPS compares unfavorably with its industry's estimated average of 47 cents. What to Do Next: Now you can make a better-informed decision about whether to buy, sell or hold Marriott International shares until the next earnings announcement. Whatever you do, be sure to check back in with us before the company's next earnings release for a full prep sheet, just like the one we did here.