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Marriott (MAR) Gears Up for Q4 Earnings: What's in Store?

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Marriott International, Inc. (MAR - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 15, 2022, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 2.1%.

Trend in Estimate Revision

The Zacks Consensus Estimate for the fourth-quarter bottom line is pegged at $1.02 per share, indicating an improvement of 750% from 12 cents reported in the year-ago quarter.

The consensus mark for revenues is pegged at $3,859 million, suggesting growth of 77.7% 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 fourth-quarter performance is likely to have benefited from a gradual increase in demand, recovery in business transient and a rise in bookings coming from digital and other direct channels. Also, focus on the Marriott Bonvoy loyalty program bodes well. During the previous quarter, the company implemented several loyalty program updates, including status, award and point extensions. It rolled out special promotions, including its second annual Week of Wonders and the relaunch of Marriott Bonvoy Moments. With increased focus on members engagement, the initiative is likely to have driven bookings from digital channels in the to-be-reported quarter.

Moreover, focus on new account acquisitions coupled with improved credit card spending and strong residential branding fees are likely to have driven the top line in the fourth quarter. The Zacks Consensus Estimate for base-management revenues and franchise fees is pegged at $205 million and $500 million, indicating year-over-year growth of 101% and 80.5%, respectively.

However, the negative influence of the omicron variant on hotel bookings coupled with supply chain issues are likely to have hurt the company’s operations in the fourth quarter. Although RevPAR and occupancy rate are likely to have improved sequentially, these are likely to have remained well below pre-pandemic levels.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Marriott this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: Marriott has an Earnings ESP of +6.21%. 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 sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat:

Cedar Fair, L.P. (FUN - Free Report) has an Earnings ESP of +6.02% and a Zacks Rank #1.

Shares of Cedar Fair have gained 39.3% in the past year. FUN’s earnings topped the consensus mark thrice but missed the same on one occasion, the average surprise being 16.5%.

Oxford Industries, Inc. (OXM - Free Report) has an Earnings ESP of +2.97% and a Zacks Rank #2.

Shares of Oxford Industries have gained 14.3% in the past year. OXM’s earnings topped the consensus mark thrice but missed the same on one occasion, the average surprise being 96.7%.

PlayAGS, Inc. (AGS - Free Report) has an Earnings ESP of +42.71% and a Zacks Rank #2.

Shares of AGS have gained 21.8% in the past year. AGS’ earnings have topped the consensus mark thrice but missed the same on one occasion, the average surprise being 33.3%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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