Marriot's Q3 Net Off, But Beats Estimates

Marriot International reported Q3 net income fell 7.0% to $131 million, or $0.33/share, but was three cents better than analysts' average estimate. Revenues rose 12% to $3.0B, also beating expectations of $2.86B. Marriot's earnings were hurt by a 36% decline in timeshare profit to $39M. Marriot's revenue per available room [REVPAR] in N. America during Q3 increased 7.2%, better than its target of 6.0% to 7.0%. Worldwide comparable REVPAR rose 7.7%. Marriot said it expects Q4 EPS between $0.61 to $0.63 and full year 2007 EPS of $1.88 to $1.90. Analysts were expecting $0.68 and $1.95, respectively. Marriot said "based on favorable group bookings, 2008 is shaping up as another strong year." The company expects 2008 EPS of $2.10 to $2.25, which is short of analysts' average estimate of $2.30. Marriot's earnings conference call is at 10:00 AM (check for Marriot's earnings call transcript later today). Shares of Marriot are untraded as of 8:00 AM. Marriot lost 1.4% to $44.32 on Wednesday.

Sources: Press release, Bloomberg, MarketWatch
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Stocks/ETFs to watch: MAR. Competitors: HOT, HLT, IHG. ETFs: XLY, PEZ, VCR

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