Earnings Preview: What to Expect From Marriott International's Report

Marriott International, Inc. (MAR), headquartered in Bethesda, Maryland, operates, franchises, and licenses hotel, residential, timeshare, and other lodging properties. Valued at $78.2 billion by market cap, the company manages a portfolio of lodging properties operating under renowned brand names such as JW Marriott, The Ritz-Carlton, W Hotels, Sheraton, Westin, and Marriott Hotels. The lodging giant is expected to announce its fiscal first-quarter earnings for 2025 before the market opens on Tuesday, May 6. 

Ahead of the event, analysts expect MAR to report a profit of $2.27 per share on a diluted basis, up 6.6% from $2.13 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions. 

For the full year, analysts expect MAR to report EPS of $10.12, up 8.5% from $9.33 in fiscal 2024. Its EPS is expected to rise 13% year over year to $11.44 in fiscal 2026. 

MAR stock has underperformed the S&P 500’s ($SPX) 6% gains over the past 52 weeks, with shares down 4.1% during this period. Similarly, it lagged behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 10.3% gains over the same time frame.

The underperformance of MAR may be attributed to slow sales growth and rising debt levels. Furthermore, the decrease in revenue per available room (RevPAR) in the Greater China region, resulting from lower domestic demand and economic difficulties, has also negatively impacted its overall performance. 

On Feb. 11, MAR shares closed down more than 5% after reporting its Q4 results. Its adjusted EPS of $2.45 surpassed Wall Street expectations of $2.38. The company’s revenue was $6.43 billion, beating Wall Street forecasts of $6.4 billion. For fiscal 2025, MAR expects adjusted EPS to be between $9.82 and $10.19.

Analysts’ consensus opinion on MAR stock is cautious, with a “Hold” rating overall. Out of 23 analysts covering the stock, five advise a “Strong Buy” rating, one suggests a “Moderate Buy,” 16 give a “Hold,” and one recommends a “Strong Sell.” MAR’s average analyst price target is $282.79, indicating a potential upside of 23.1% from the current levels.