Marriott Posts Higher Q1 Earnings, But Revenue Miss Views

Marriott International Inc MAR reported a 20 percent rise in its earnings for the first quarter. However, the company's revenue missed analysts' expectations. The company maintained its earnings outlook of $3 to $3.12 per share for the full year. It projects FY15 adjusted EBITDA of $1.73 billion to $1.78 billion. For the current quarter, the company expects earnings of $0.78 to $0.83 per share, versus analysts' estimates of $0.83 per share. The Bethesda, Maryland-based company reported a quarterly profit of $207 million, or $0.73 per share, versus a year-ago profit of $172 million, or $0.57 per share. Its revenue rose 6.7 percent to $3.51 billion. However, analysts were expecting earnings of $0.70 per share on revenue of $3.59 billion. The average estimate among 26 Estimize users was for earnings of $0.70 per share and revenue of $3.59 billion. On a constant-dollar basis, world-wide comparable revenue per available room climbed 6.8 percent. North American comparable systemwide RevPAR gained 6.9 percent on a constant dollar basis. Adjusted earnings before interest, taxes, depreciation and amortization rose 27 percent to $429 million in the quarter. During the quarter, the company repurchased 5.5 million shares of its common stock for $431 million. Arne M. Sorenson, president and chief executive officer of Marriott International, said, "Worldwide constant dollar RevPAR increased at the high end of our expectations in the first quarter of 2015. Strong transient and group demand and very high occupancy rates in the U.S. allowed us to continue to reduce special discounts and enhance pricing. Internationally, robust demand in Mexico and our Caribbean resorts and increasing travel to Egypt drove RevPAR higher. Weak currencies in Europe, the U.K. and Japan encouraged both domestic demand and international arrivals into those markets. As a result, constant dollar RevPAR at our international hotels increased 6.7 percent, well ahead of our expectations." Marriott shares slipped 1.93 percent to $82.25 in the after-hours trading session.