Marriott (MAR) posted a first-quarter earnings per share (EPS) that missed analyst expectations, sending its shares 1.5% lower in premarket trading. The earnings outlook for the next quarter also missed the mark.
The company reported EPS of $2.13, falling short of the consensus projection of $2.17. However, the company's revenue for the quarter exceeded expectations, coming in at $5.98 billion compared to the consensus estimate of $5.95 billion.
The adjusted operating margin for the quarter was 62%, down from 64% year-over-year and slightly below the expected 63%.
For the second quarter of 2024, Marriott anticipates an EPS range of $2.43 to $2.48, which is below the consensus estimate of $2.51.
The company expects adjusted EBITDA to be between $1.30 billion and $1.32 billion, closely aligning with the estimate of $1.31 billion.
For the full year, Marriott forecasts an EPS of $9.31 to $9.65, compared to analyst expectations of $9.44.
The company has raised its adjusted EBITDA outlook from the previous range of $4.88 billion to $5.01 billion to now expect between $4.96 billion and $5.09 billion, compared to an analyst estimate of $4.94 billion.
“We were pleased with our results in the quarter, which included both excellent net rooms growth and cash generation,” said Anthony Capuano, President and Chief Executive Officer.
"Our results in the first quarter highlight the resiliency of our asset-light business model and the strength of our brands. We are raising our full year earnings guidance and now expect to return between $4.2 billion to $4.4 billion to shareholders in 2024,” he added