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Marriott (MAR) to Report Q4 Earnings: What's in the Offing?
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Marriott International, Inc. (MAR - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 18. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by 185.7%.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 10 cents, suggesting a decline of 93.6% from $1.57 in the prior-year quarter. The company’s earnings estimates have remained stable over the past seven days. The consensus mark for revenues stands at $2.42 billon, suggesting a slump of 54.9% from the year-ago quarter.
Factors to Note
Marriot’s fourth-quarter results are likely to reflect the impact of the coronavirus pandemic. Dismal revenue per available room (RevPAR) and occupancy rates might have weighed on the to-be-reported quarter’s performance. During third-quarter 2020, RevPAR for worldwide comparable system-wide properties fell 65.9% in constant dollars (down 65.9% in actual dollars) on account of 40.8% and 26.4% decline in occupancy and average daily rate (ADR), respectively. The dismal trend is likely to have continued in the fourth quarter because of the pandemic.
Marriott International, Inc. Price and EPS Surprise
Moreover, the Zacks Consensus Estimate for fourth-quarter worldwide RevPAR suggests a decline of nearly 69% year over year. Comparable system-wide RevPAR in North America is estimated to witness a decline of nearly 73.4% year over year. Moreover, dismal RevPAR in Europe, Caribbean and Latin America, and the Middle East and Africa might get reflected in the to-be-reported quarter’s results.
The fourth-quarter results are likley to reflect dismal base management and franchise revenues. The Zacks Consensus Estimate for revenues for base management and franchise is pegged at $96 million and $293 million, indicating a decline of 67.8% and 41.5% year over year, respectively.
However, the company might have benefited from sequential improvement in occupancy in Greater China. During third-quarter 2020, the company announced that occupancy levels in Greater China were currently 67%, up from the lows of 9% hit in mid-February.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Marriot’s this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. But that's not the case here.
Earnings ESP: Marriot’s has an Earnings ESP of +24.47%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #4 (Sell).
Stocks With Favorable Combinations
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Camping World Holdings, Inc. (CWH - Free Report) has a Zacks Rank #2 and an Earnings ESP of +45.46%.
iHeartMedia, Inc. (IHRT - Free Report) has a Zacks Rank #3 and an Earnings ESP of +14.29%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Shutterstock
Marriott (MAR) to Report Q4 Earnings: What's in the Offing?
Marriott International, Inc. (MAR - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 18. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by 185.7%.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 10 cents, suggesting a decline of 93.6% from $1.57 in the prior-year quarter. The company’s earnings estimates have remained stable over the past seven days. The consensus mark for revenues stands at $2.42 billon, suggesting a slump of 54.9% from the year-ago quarter.
Factors to Note
Marriot’s fourth-quarter results are likely to reflect the impact of the coronavirus pandemic. Dismal revenue per available room (RevPAR) and occupancy rates might have weighed on the to-be-reported quarter’s performance. During third-quarter 2020, RevPAR for worldwide comparable system-wide properties fell 65.9% in constant dollars (down 65.9% in actual dollars) on account of 40.8% and 26.4% decline in occupancy and average daily rate (ADR), respectively. The dismal trend is likely to have continued in the fourth quarter because of the pandemic.
Marriott International, Inc. Price and EPS Surprise
Marriott International, Inc. price-eps-surprise | Marriott International, Inc. Quote
Moreover, the Zacks Consensus Estimate for fourth-quarter worldwide RevPAR suggests a decline of nearly 69% year over year. Comparable system-wide RevPAR in North America is estimated to witness a decline of nearly 73.4% year over year. Moreover, dismal RevPAR in Europe, Caribbean and Latin America, and the Middle East and Africa might get reflected in the to-be-reported quarter’s results.
The fourth-quarter results are likley to reflect dismal base management and franchise revenues. The Zacks Consensus Estimate for revenues for base management and franchise is pegged at $96 million and $293 million, indicating a decline of 67.8% and 41.5% year over year, respectively.
However, the company might have benefited from sequential improvement in occupancy in Greater China. During third-quarter 2020, the company announced that occupancy levels in Greater China were currently 67%, up from the lows of 9% hit in mid-February.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Marriot’s this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. But that's not the case here.
Earnings ESP: Marriot’s has an Earnings ESP of +24.47%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #4 (Sell).
Stocks With Favorable Combinations
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
AMC Entertainment Holdings, Inc. (AMC - Free Report) has a Zacks Rank #2 and an Earnings ESP of +14.69%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Camping World Holdings, Inc. (CWH - Free Report) has a Zacks Rank #2 and an Earnings ESP of +45.46%.
iHeartMedia, Inc. (IHRT - Free Report) has a Zacks Rank #3 and an Earnings ESP of +14.29%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>