Yahoo Finance Marriott International Inc (MAR) Q1 2024 Earnings: Mixed Results Amidst Revenue Growth and EPS ...
Reported Net Income: $564 million, down from $757 million in the year-ago quarter, falling short of estimates of $629.12 million.
Adjusted Net Income: $620 million, decreased from $648 million in the prior year's quarter, slightly below estimates of $629.12 million.
Reported EPS: $1.93, a decrease from $2.43 year-over-year, falling short of the estimated $2.17.
Adjusted EPS: $2.13, up from $2.09 in the previous year, slightly below the estimated $2.17.
Revenue: Specific revenue figures not disclosed, but adjusted EBITDA increased to $1,142 million from $1,098 million year-over-year.
Room Expansion: Added approximately 46,000 net rooms during the quarter, significantly bolstering the global development pipeline.
Share Repurchases: Repurchased 4.8 million shares for $1.2 billion in the quarter, with a total of $1.7 billion returned to shareholders through dividends and share repurchases year to date.
On May 1, 2024, Marriott International Inc (NASDAQ:MAR) released its first quarter financial results via an 8-K filing. The company reported a mixed financial performance with significant growth in certain areas, while facing challenges in others, particularly in earnings per share (EPS).
Company Overview
Marriott operates a vast portfolio of 1.6 million rooms across approximately 30 brands, including major names like Marriott, Courtyard, and Sheraton, and newer lifestyle brands such as Autograph and Moxy. The company's business model is heavily focused on managed and franchised properties, which constitute 97% of its rooms. With a significant presence in North America, which accounts for 63% of its total rooms, Marriotts revenue primarily stems from management, franchise, and incentive fees.
Financial Performance Highlights
The first quarter of 2024 saw Marriott achieving a worldwide comparable systemwide constant dollar RevPAR increase of 4.2%, with a notable 11.1% increase in international markets. However, the company faced a downturn in its earnings metrics. The reported diluted EPS was $1.93, a decrease from $2.43 in the same quarter of the previous year. Adjusted diluted EPS also saw a slight increase to $2.13 from $2.09 year-over-year, but fell short of the estimated $2.17.
Marriotts reported net income for the quarter was $564 million, compared to $757 million in the prior year's first quarter. Adjusted net income was $620 million, down from $648 million year-over-year, and below the analyst estimate of $629.12 million. Despite these challenges, the companys adjusted EBITDA improved, totaling $1,142 million compared to $1,098 million in the first quarter of 2023.
Strategic Developments and Operational Achievements
During the quarter, Marriott added approximately 46,000 net new rooms, significantly bolstered by the inclusion of nearly 37,000 rooms from its strategic agreement with MGM Resorts International. This expansion is part of Marriotts broader strategy to enhance its global footprint, which now includes a development pipeline of 3,419 properties.
The company also highlighted the performance of its Marriott Bonvoy program, which has grown to approximately 203 million global members. This loyalty program continues to be a key competitive advantage for Marriott, driving engagement and revenue.
Financial Position and Shareholder Returns
Marriotts balance sheet shows a total debt of $12.7 billion with cash and equivalents of $0.4 billion. Reflecting its commitment to shareholder returns, the company repurchased 4.8 million shares for $1.2 billion and returned a total of $1.7 billion to shareholders through dividends and share repurchases in the first quarter alone.
Future Outlook
Looking ahead, Marriott has raised its full-year earnings guidance and expects to return between $4.2 billion and $4.4 billion to shareholders in 2024. The company anticipates continued growth with RevPAR increases of 3% to 5% worldwide and net rooms growth of 5.5% to 6% by the end of 2024.
Despite some financial metrics falling short of analyst expectations, Marriotts strategic expansions and robust development pipeline underscore its resilience and potential for long-term growth. Investors and stakeholders will be watching closely to see how these strategic initiatives translate into financial performance in the upcoming quarters.
For more detailed information and to follow Marriotts ongoing financial developments, please visit their investor relations website.
Explore the complete 8-K earnings release (here) from Marriott International Inc for further details.
This article first appeared on GuruFocus.
