Here's What Key Metrics Tell Us About Marriott (MAR) Q1 Earnings

Marriott International (MAR) reported $5.62 billion in revenue for the quarter ended March 2023, representing a year-over-year increase of 33.7%. EPS of $2.09 for the same period compares to $1.25 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $5.28 billion, representing a surprise of +6.42%. The company delivered an EPS surprise of +12.37%, with the consensus EPS estimate being $1.86.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Marriott performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Number of rooms - Total: 1534000 compared to the 1539127 average estimate based on three analysts.

• REVPAR Growth Rate - Systemwide - Worldwide: 34.3% compared to the 32.8% average estimate based on three analysts.

• Contract investment amortization: -$21 million versus -$22.79 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -12.5% change.

• Gross fee revenues: $1.13 billion versus $1.06 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +39% change.

• Net fee revenues: $1.11 billion versus the seven-analyst average estimate of $1.04 billion. The reported number represents a year-over-year change of +40.6%.

• Owned, leased, corporate housing and other revenue: $356 million versus $326.77 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +35.9% change.

• Revenues- Franchise fees: $639 million compared to the $629.91 million average estimate based on seven analysts. The reported number represents a change of +27.8% year over year.

• Revenues- Incentive management fees: $201 million versus the seven-analyst average estimate of $145.14 million. The reported number represents a year-over-year change of +97.1%.

• Revenues- Cost reimbursements: $4.15 billion compared to the $3.91 billion average estimate based on seven analysts. The reported number represents a change of +31.8% year over year.

• Revenues- Base management fees: $293 million versus $287.01 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +37.6% change.

View all Key Company Metrics for Marriott here>>>

Shares of Marriott have returned +3.5% over the past month versus the Zacks S&P 500 composite's +1.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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