Marriott Tops Q4 Estimates As 2025 Outlook Pressures Stock

Marriott International Inc MAR shares are trading lower after the company’s fourth-quarter FY24 earnings and outlook.

The company reported first-quarter FY24 sales growth of 5.5% year-on-year to $6.429 billion, beating the analyst consensus estimate of $6.379 billion.

Comparable systemwide constant dollar RevPAR increased 5% worldwide, 4.1% in the U.S. & Canada, and 7.2% in international markets, compared to the fourth-quarter FY23.

With gross room additions of over 123,000 in 2024, net rooms grew 6.8% from year-end 2023

Total expenses declined 6% Y/Y to $5.7 billion. Adjusted EBITDA for the quarter was $1.28 billion versus $1.19 billion a year ago.

Operating margin for the quarter remained flat Y/Y to 11.7%, with operating income increasing 5% to $752 billion.

Adjusted EPS of $2.45 beat the consensus estimate of $2.38.

The company added about 109,000 rooms globally during the year 2024. Marriott held $0.4 billion in cash and equivalents as of March 31, 2024.

In fourth-quarter, Marriott repurchased 2.0 million shares of common stock for $0.5 billion. The company returned over $4.4 billion to shareholders through dividends and share repurchases in 2024.

Outlook: Marriott sees FY25 adjusted EPS of $9.82 – $10.19 versus the $10.65 estimate and RevPAR growth of 2% – 4%.

The company expects first-quarter adjusted EPS of $2.20-$2.23 against an estimate of $2.37 and RevPAR growth of 3% – 4%.

Price Action: MAR shares are trading lower by 4.3% at $291.30 at last check Tuesday.

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