Marriott Gears Up to Report Q3 Earnings: What's in Store?

Core Viewpoint - Marriott International, Inc. is expected to report third-quarter 2024 results on November 4, with earnings per share (EPS) estimated at $2.31, reflecting a 9.5% increase year-over-year, and revenues projected at $6.28 billion, indicating a 6% growth from the previous year [1][2]. Revenue Expectations - The anticipated revenue growth is attributed to an increase in revenue per available room (RevPAR) driven by rising global leisure and business travel demand, with improvements noted in both international regions and the United States & Canada [3]. - Marriott expects gross fee revenues to range between $1.275 billion and $1.290 billion, up from $1.197 billion in the same quarter last year, with a model prediction of $1.28 billion, representing a 7.1% year-over-year increase [4]. Market Performance - Despite some demand softness in China, strong booking trends in other international markets, particularly in the Asia Pacific region, are expected to support overall performance [5]. - Worldwide RevPAR is projected to grow by 3.9% to $134.8, with international RevPAR expected to increase by 5.2% to $126.7, and U.S. & Canada RevPAR anticipated to rise by 1.6% to $136.1 [6]. Margin and Expense Outlook - The company is expected to achieve year-over-year growth in margins and earnings, despite facing lower volume per guest and higher marketing costs, due to robust global travel demand and efficient operating models [7]. - General, administrative, and other expenses are projected to be between $240 million and $250 million, up from $239 million in the prior-year quarter, while adjusted EBITDA is expected to be between $1.225 billion and $1.250 billion, an increase from $1.142 billion [8]. Earnings Prediction - The model predicts an earnings beat for Marriott, supported by a positive Earnings ESP of +5.03% and a Zacks Rank of 3 (Hold), indicating favorable conditions for exceeding earnings expectations [10][11].