What To Expect From Marriott's (MAR) Q4 Earnings

Global hospitality company Marriott (NASDAQ:MAR) will be reporting earnings this Tuesday before market open. Here’s what to look for.

Marriott beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $6.49 billion, up 3.7% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ adjusted operating income estimates but EBITDA guidance for next quarter slightly missing analysts’ expectations.

Is Marriott a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Marriott’s revenue to grow 4% year on year to $6.69 billion, slowing from the 5.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.62 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Marriott has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Marriott’s peers in the travel and vacation providers segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Royal Caribbean delivered year-on-year revenue growth of 13.3%, meeting analysts’ expectations, and United Airlines reported revenues up 4.8%, in line with consensus estimates. Royal Caribbean traded up 11.3% following the results while United Airlines was also up 2.2%.

Read our full analysis of Royal Caribbean’s results here and United Airlines’s results here.

While some of the travel and vacation providers stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.2% on average over the last month. Marriott is up 3.1% during the same time and is heading into earnings with an average analyst price target of $321.48 (compared to the current share price of $333.26).

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