Why Is Marriott (MAR) Up 8.3% Since Last Earnings Report?

A month has gone by since the last earnings report for Marriott International (MAR). Shares have added about 8.3% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Marriott due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Marriott International, Inc. before we dive into how investors and analysts have reacted as of late.Marriott Q3 Earnings Beat Estimates, RevPAR Rises Y/YMarriott International reported third-quarter 2025 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. Its earnings beat the estimate for the fourth straight quarter. Both metrics increased on a year-over-year basis.The company delivered strong performance in the quarter, supported by solid rooms growth, profit gains and continued development momentum. Global revenue per available room improved slightly, led by strength in international markets. The Asia Pacific region performed well, driven by healthy travel demand in Japan, Australia and Vietnam. The luxury segment continued to outperform, supported by strong rates and sustained demand. The company’s broad portfolio, spanning from midscale to luxury brands and including extended stay and unique lodging offerings, continued to attract strong owner preference.Development activity remained robust, with record year-to-date signings and steady progress in conversions. Conversions accounted for a meaningful portion of new additions, highlighting continued interest from owners and franchise partners.MAR’s Q3 Earnings & Revenue DiscussionMarriott’s adjusted earnings per share (EPS) of $2.47 beat the Zacks Consensus Estimate of $2.41. It reported adjusted earnings of $2.26 per share in the prior-year quarter.Quarterly revenues of $6,489 million beat the consensus mark of $6,454 million. The top line moved up 4% on a year-over-year basis.Revenues from Base management and Franchise fees were $314 million and $876 million, respectively, up 1% and 8% year over year. We estimated the metrics to be $314.9 million and $865.3 million, respectively.However, Incentive management fees decreased of 7% year over year to $148 million. We expected the metric to be $144.2 million.MAR’s RevPAR & MarginsRevPAR for worldwide comparable system-wide properties rose 0.5% (in constant dollars) year over year. This upside was backed by a 0.9% 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 4.7% (in constant dollars) year over year. Occupancy moved up 1.2% year over year, while ADR rose 3%. Comparable system-wide RevPAR in Greater China remained flat year over year.On a constant-dollar basis, international comparable system-wide RevPAR increased 2.6% year over year. Occupancy and ADR gained 0.8% and 1.4%, respectively, year over year. Comparable system-wide RevPAR in Europe gained 0.8% year over year. RevPAR in the Caribbean & Latin America and the Middle East & Africa rose 2.8% and 8.7%, respectively, year over year.Total expenses remained almost flat year over year at $5.31 billion. Our estimate was pegged at $5.41 billion.Adjusted EBITDA amounted to $1.35 billion compared with $1.23 billion reported in the prior-year quarter. We predicted the metric to be $1.32 billion.Balance Sheet of MARAt the third-quarter end, Marriott's total debt was $16 billion compared with $15.7 billion reported in the prior quarter. Cash and cash equivalents, as of Sept. 30, 2025, were $0.7 billion compared with $0.4 billion as of 2024-end.Year to date (through Sept. 30, 2025), the company repurchased 9.7 million shares worth $2.6 billion.MAR’s Unit DevelopmentsAt the end of the third quarter, Marriott's worldwide development pipeline totaled 3,923 hotels. As of the quarter's end, about 1,536 properties with more than 250,000 rooms were under construction.Marriott’s Q4 & 2025 OutlookFor the fourth quarter, management anticipates gross fee revenues in the range of $1.382-$1.402 billion. General and administrative expenses are anticipated in the range of $251-$261 million. Adjusted EBITDA is expected to be between $1.371 billion and $1.401 billion. MAR estimates fourth-quarter EPS to be between $2.54 and $2.62. The company predicts worldwide system-wide RevPAR year-over-year growth to be 1-2% in the fourth quarter.The company still expects worldwide system-wide RevPAR to increase 1.5-2.5% year over year in 2025.For 2025, Marriott now expects its gross fee revenues to be $5.395-$5.415 billion compared with the prior expected range of $5.365-$5.420 billion. General and administrative expenses are anticipated in the range of $975-$985 million compared with the prior expected range of $965-$985 million.Adjusted EBITDA is expected to be between $5.352 billion and $5.382 billion compared with the previous expectation of $5.310-$5.395 billion. The company now envisions 2025 EPS in the band of $9.98-$10.06 compared with the prior expectation of $9.85-$10.09.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.VGM ScoresAt this time, Marriott has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for value investors.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Marriott has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerMarriott is part of the Zacks Hotels and Motels industry. Over the past month, Hilton Worldwide Holdings Inc. (HLT), a stock from the same industry, has gained 6%. The company reported its results for the quarter ended September 2025 more than a month ago.Hilton Worldwide reported revenues of $3.12 billion in the last reported quarter, representing a year-over-year change of +8.8%. EPS of $2.11 for the same period compares with $1.92 a year ago.For the current quarter, Hilton Worldwide is expected to post earnings of $2.02 per share, indicating a change of +14.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Hilton Worldwide. Also, the stock has a VGM Score of B.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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 Marriott International, Inc. (MAR): Free Stock Analysis Report Hilton Worldwide Holdings Inc. 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