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Marriott (MAR) to Report Q3 Earnings: What's in the Offing?

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Marriott International, Inc. (MAR - Free Report) is scheduled to report third-quarter 2021 results on Nov 3, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 83.7%.

Estimate Trend

The Zacks Consensus Estimate for the third-quarter bottom line is pegged at 97 cents per share, indicating an improvement of 1,516.7% from 6 cents reported in the year-ago quarter.

For revenues, the consensus mark is pegged at $3,468 million, suggesting growth of 53.8% from the prior-year quarter’s reported figure.

Marriott International, Inc. Price and EPS Surprise

 

Marriott International, Inc. Price and EPS Surprise

Marriott International, Inc. price-eps-surprise | Marriott International, Inc. Quote

Let's take a look at how things have shaped up in the quarter.

Key Factors to Note

Marriot’s third-quarter 2021 performance is likely to have benefitted from a gradual increase in demand, improved occupancy and hotel openings. Although recovery is subject to virus caseloads and travel restrictions across regions; emphasis on streamlining operations, hotel conversions, the Marriott Bonvoy loyalty program and an asset-light business model is likely to have aided the performance in the to-be-reported quarter.

Moreover, a focus on global card acquisitions coupled with improved credit card spending and strong residential branding fees are likely to have driven the top line in the third quarter. The Zacks Consensus Estimate for base-management revenues and franchise fees is pegged at $189 million and $477 million, indicating year-over-year growth of 117.2% and 71%, respectively.

However, high operating and fixed costs stemming from the pandemic as well as labor constraints are likely to have negatively impacted the company’s performance in the third quarter. Although RevPAR and occupancy rate are likely to have improved sequentially, these are likely to have remained well below the pre-pandemic level.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Marriott 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: Marriott has an Earnings ESP of -3.38%. 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 #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

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:

Golden Entertainment, Inc. (GDEN - Free Report) currently sports a Zacks Rank #1 and has an Earnings ESP of +37.45%.

Accel Entertainment, Inc. (ACEL - Free Report) has a Zacks Rank #2 and an Earnings ESP of +20.00% at present.

Choice Hotels International, Inc. (CHH - Free Report) currently has a Zacks Rank #2 and an Earnings ESP of +4.04%.


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