Marriott Q1 Earnings Surpass Estimates, Revenues Lag, RevPAR Rises Y/Y

Marriott International, Inc. MAR reported first-quarter 2025 results, with adjusted earnings beating the Zacks Consensus Estimate but revenues missing the same. Earnings surpassed the estimate for the second straight quarter. Both metrics increased year over year.Marriott’s president and CEO, Anthony Capuano, attributed the strong first-quarter performance to resilient travel demand, the power of its brand portfolio and a fee-based business model.MAR continued to see strong momentum in its development pipeline, achieving a record for first-quarter signings with more than 34,000 rooms added, nearly two-thirds of which were in international markets. Conversions played a significant role in this growth, accounting for approximately one-third of both new room signings and openings.MAR’s Q1 Earnings & Revenue DiscussionMarriott’s adjusted earnings per share (EPS) of $2.32 beat the Zacks Consensus Estimate of $2.27. It reported adjusted earnings of $2.13 per share in the prior-year quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)Quarterly revenues of $6,263 million marginally missed the consensus mark of $6,275 million. However, the top line moved up 5% on a year-over-year basis.Revenues from Base management and Franchise fees were $325 million and $746 million, respectively, up 4% and 8% year over year. We estimated the metrics to be $322.1 million and $721.9 million, respectively.Incentive management fees were $204 million, reflecting a fall of 2% from $209 million reported in the prior-year quarter. We projected the metric to be $210.1 million.Marriott International, Inc. Price, Consensus and EPS Surprise Marriott International, Inc. price-consensus-eps-surprise-chart | Marriott International, Inc. QuoteMAR’s RevPAR & MarginsRevPAR for worldwide comparable system-wide properties rose 5.2% (in constant dollars) year over year. This upside was backed by a 3.4% increase in average daily rate (“ADR”) and a 1.2% rise in occupancy year over year.Comparable system-wide RevPAR in the Asia Pacific (excluding China) increased 10.6% (in constant dollars) year over year. Occupancy moved up 1.7% year over year, while ADR rose 8%. Comparable system-wide RevPAR in Greater China declined 2.1% year over year.On a constant-dollar basis, international comparable system-wide RevPAR increased 5.2% year over year. Occupancy and ADR gained 1.1% and 3.5%, respectively, year over year. Comparable system-wide RevPAR in Europe gained 5.1% year over year. RevPAR in the Caribbean & Latin America and Middle East & Africa rose 10.8% and 4.5%, respectively, year over year.Total expenses decreased 4% year over year to $5.31 billion, owing to a decline in reimbursed expenses. Our estimate was pegged at $5.32 billion.Adjusted EBITDA amounted to $1.21 billion compared with $1.14 billion reported in the prior-year quarter. We predicted the metric to be $1.19 billion.Balance Sheet of MARAt the first-quarter end, Marriott's total debt was $15.1 billion compared with $14.4 billion reported in the prior quarter. Cash and cash equivalents, as of March 31, 2025, were $0.5 billion compared with $0.4 billion as of 2024-end.Year to date (through April 29, 2025), the company repurchased 2.8 million shares worth $0.8 billion.MAR’s Unit DevelopmentsAt the end of the first quarter, Marriott's worldwide development pipeline totaled 3,808 hotels. As of the quarter's end, about 1,447 properties with more than 244,000 rooms were under construction.Marriott’s Q2 & 2025 OutlookFor the second quarter, management anticipates gross fee revenues in the range of $1.38-$1.39 billion. Adjusted EBITDA is expected to be between $1.37 billion and $1.39 billion. MAR estimates second-quarter EPS to be between $2.57 and $2.62.The company projects worldwide system-wide RevPAR to increase 1.5-3.5% year over year in 2025, compared with the prior estimate of 2-4% growth.For 2025, Marriott continues to expect its gross fee revenues to be $5.37-$5.48 billion. General and administrative expenses are projected in the range of $965-$985 million.Adjusted EBITDA is expected to be between $5.3 billion and $5.4 billion. The company continues to envision 2025 EPS in the band of $9.82-$10.19.MAR’s Zacks RankMarriott currently carries a Zacks Rank #3 (Hold).Key PicksSome better-ranked stocks from the Zacks Consumer-Discretionary sector are WW International, Inc. WW, Sportradar Group AG SRAD and American Outdoor Brands, Inc. AOUT.WW International presently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. WW International delivered a trailing four-quarter earnings surprise of 88.2%, on average. The stock has gained 43.9% in the past year. The consensus estimate for WW International’s 2026 EPS implies growth of 48.8% from the year-ago levels. American Outdoor carries a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 79.6%, on average. The stock has gained 42.7% in the past year. The Zacks Consensus Estimate for American Outdoor’s fiscal 2025 sales and EPS indicates growth of 3.7% and 93.8%, respectively, from the year-ago levels.Sportradar Group presently carries a Zacks Rank #2. The consensus estimate for Sportradar Group’s 2025 sales and EPS implies growth of 15.8% and 172.7%, respectively, from the year-ago levels. Sportradar Group stock has surged 146.9% in the past year. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marriott International, Inc. (MAR): Free Stock Analysis Report WW International, Inc. (WW): Free Stock Analysis Report American Outdoor Brands, Inc. (AOUT): Free Stock Analysis Report Sportradar Group AG (SRAD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks