Marriott Stock Up as Q2 Earnings Beat Estimates, RevPAR Rises Y/Y

Marriott International, Inc. MAR reported second-quarter 2025 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. Its earnings beat the estimate for the third straight quarter. Both metrics increased on a year-over-year basis.Following the results, the stock surged 6.1% in today’s pre-market trading session.Despite macroeconomic uncertainty, the company delivered steady performance with strong financial results and continued net rooms growth. Global revenue per available room (RevPAR) moved up, mainly supported by strength in the leisure segment. Base management and franchise fees rose, driven by room additions, higher RevPAR and increased credit card contributions. The company completed the acquisition of citizenM, which is expected to support global growth.MAR continued to see strong momentum in its development pipeline, with nearly 32,000 rooms signed during the quarter. More than 70% of these were in international markets. The quarter ended with a record pipeline of more than 590,000 rooms. Conversions remained an important growth lever, accounting for around 30% of room signings and openings in the first half of the year. For the full year, the company still expects net rooms growth to approach 5%.MAR’s Q2 Earnings & Revenue DiscussionMarriott’s adjusted earnings per share (EPS) of $2.65 beat the Zacks Consensus Estimate of $2.64. It reported adjusted earnings of $2.50 per share in the prior-year quarter.Quarterly revenues of $6,744 million beat the consensus mark of $6,666 million. The top line moved up 5% on a year-over-year basis.Marriott International, Inc. Price, Consensus and EPS Surprise Marriott International, Inc. price-consensus-eps-surprise-chart | Marriott International, Inc. QuoteRevenues from Base management and Franchise fees were $340 million and $860 million, respectively, up 3% and 5% year over year. We estimated the metrics to be $337.9 million and $847 million, respectively.Incentive management fees were $200 million, reflecting an increase of 3% from $195 million reported in the prior-year quarter. We expected the metric to be $190.2 million.MAR’s RevPAR & MarginsRevPAR for worldwide comparable system-wide properties rose 1.5% (in constant dollars) year over year. This upside was backed by a 1.9% increase in average daily rate (“ADR”), offset by a 0.3% fall in occupancy year over year.Comparable system-wide RevPAR in the Asia Pacific (excluding China) increased 8.8% (in constant dollars) year over year. Occupancy moved up 1.1% year over year, while ADR rose 7%. Comparable system-wide RevPAR in Greater China declined 0.5% year over year.On a constant-dollar basis, international comparable system-wide RevPAR increased 5.3% year over year. Occupancy and ADR gained 0.9% and 3.9%, respectively, year over year. Comparable system-wide RevPAR in Europe gained 3.8% year over year. RevPAR in the Caribbean & Latin America and the Middle East & Africa rose 3% and 14%, respectively, year over year.Total expenses increased 5% year over year to $5.51 billion, owing to a decline in reimbursed expenses. Our estimate was pegged at $5.52 billion.Adjusted EBITDA amounted to $1.42 billion compared with $1.32 billion reported in the prior-year quarter. We predicted the metric to be $1.37 billion.Balance Sheet of MARAt the second-quarter end, Marriott's total debt was $15.7 billion compared with $15.1 billion reported in the prior quarter. Cash and cash equivalents, as of June 30, 2025, were $0.7 billion compared with $0.4 billion as of 2024-end.Year to date (through July 30, 2025), the company repurchased 6.4 million shares worth $1.7 billion.MAR’s Unit DevelopmentsAt the end of the second quarter, Marriott's worldwide development pipeline totaled 3,858 hotels. As of the quarter's end, about 1,447 properties with more than 238,000 rooms were under construction.Marriott’s Q3 & 2025 OutlookFor the third quarter, management anticipates gross fee revenues in the range of $1.310-$1.325 billion. Adjusted EBITDA is expected to be between $1.288 billion and $1.318 billion. MAR estimates third-quarter EPS to be between $2.31 and $2.39. The company predicts worldwide system-wide RevPAR year-over-year growth to be flat to 1% in the third quarter.The company expects worldwide system-wide RevPAR to increase 1.5-2.5% year over year in 2025, compared with the prior estimate of 1.5-3.5% growth.For 2025, Marriott now expects its gross fee revenues to be $5.365-$5.420 billion compared with the prior expected range of $5.365-$5.475 billion. General and administrative expenses are anticipated in the range of $965-$985 million.Adjusted EBITDA is expected to be between $5.310 billion and $5.395 billion compared with the previous expectation of $5.285-$5.425 billion. The company now envisions 2025 EPS in the band of $9.85-$10.09 compared with the prior expectation of $9.82-$10.19.MAR’s Zacks Rank & Key PicksMarriott currently carries a Zacks Rank #4 (Sell).Some better-ranked stocks from the Zacks Consumer-Discretionary sector are Carnival Corporation & plc CCL, Monarch Casino & Resort, Inc. MCRI and Planet Fitness, Inc. PLNT.Carnival presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.Carnival delivered a trailing four-quarter earnings surprise of 169.9%, on average. The stock has gained 20.9% in the year-to-date period. The Zacks Consensus Estimate for Carnival’s 2025 sales and EPS implies growth of 5.9% and 40.9%, respectively, from the year-ago levels. Monarch Casino presently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 11.1%, on average. The stock has rallied 28.5% in the year-to-date period. The Zacks Consensus Estimate for Monarch Casino’s 2025 sales and EPS indicates an increase of 4.5% and 9.9%, respectively, from the year-ago levels.Planet Fitness currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 6.9%, on average. The stock has gained 11.6% in the year-to-date period. The Zacks Consensus Estimate for Planet Fitness’ 2025 sales and EPS indicates growth of 10.5% and 12.4%, respectively, from the year-ago period’s levels.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity.Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want 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 Carnival Corporation (CCL): Free Stock Analysis Report Marriott International, Inc. (MAR): Free Stock Analysis Report Monarch Casino & Resort, Inc. (MCRI): Free Stock Analysis Report Planet Fitness, Inc. (PLNT): 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