FX168 Financial News (North America) News Marriott International Group shares fell 2% on Monday after the Bethesda, Maryland-based hotel company lowered its full-year adjusted earnings per share forecast. The pessimistic outlook falls short of the average expectations of analysts tracked by Bloomberg.
In an earnings call on Monday morning, Marriott's chief financial officer Leeny Oberg told investors that consumers have cut back on travel this month, citing adverse factors brought about by increased uncertainty about the US election.
“Revenue per available room (REVPAR) growth in the US and Canada in the fourth quarter is currently expected to be roughly the same as in the third quarter, with strong leisure and BP trends in October offsetting the weakness in November due to tomorrow's election. The impact of the general election on the US and Canada REVPAR is expected to be around negative 300 basis points in November and negative 100 basis points this quarter, double the previous election cycle, as the number of temporary and group room nights this week and next has decreased significantly,” Oberg said.
Marriott CEO Anthony Capuano told investors that revenue in the fourth quarter was “largely flat” due to the negative impact of the US election.
Here's a breakdown of Marriott's third-quarter earnings (provided by Bloomberg):
Adjusted earnings per share of $2.26, YoY $2.11, estimated at $2.31
Earnings per share of $2.07, YoY $2.51
Revenue of $6.26 billion, up 5.5% year over year, estimated at $6.27 billion
North American REVPAR change (at fixed exchange rates) +2.1%
Global REVPAR change (at fixed exchange rates) +3%
Adjusted Ebitda of $1.23 billion, up 7.6% year over year, estimated at $1.24 billion
Adjusted revenue of $1.02 billion, up 6% year over year, estimated at $1.04 billion
Adjusted operating margin 62%, YoY 62%, estimated 64.2%
Total number of stores: 9,068, up 4.5% year over year, estimated at 8,851
The total number of guest rooms at the end of the period was 1.67 million, up 5.9% year on year, and is expected to be 1.67 million
Fourth quarter forecast:
Adjusted earnings per share of $2.31 to $2.39, expected to be $2.43
Adjusted profit before interest, tax, depreciation and amortization of $1.24 billion to $1.27 billion, estimated at $1.28 billion
Gross expense income of $1.29 billion to $1.31 billion
Forecast for the whole year:
Adjusted earnings per share of $9.19 to $9.27, expected to be $9.23 to $9.40, and $9.36 (Bloomberg consensus)
Adjusted profit before interest, tax, depreciation and amortization of $4.93 billion to $4.96 billion, expected to be $4.95 billion to $5.02 billion, and estimated at $4.99 billion
Gross expense income of $5.13 billion to $5.15 billion and is expected to be between $5.13 billion and $5.18 billion
With the exception of Marriott, the number of references to “elections” on earnings calls increased dramatically this earnings season, surpassing the number of mentions in the previous election cycle, and comparable to +3,000 in the fourth quarter of 2016.
