Earnings Preview: Marriott International, Inc.

Jul.10.12 | About: Marriott International, (MAR)

Marriott International, Inc. (NASDAQ:MAR) operates, franchises, and licenses hotels and corporate housing properties worldwide. Marriott International is scheduled to report its second quarter earnings results on July 12, 2012, before market open.

Technical Overview

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Marriott International has a market cap of $12.90 billion and it is currently trading around $38.96 with a 52 week range of $25.25 to $40.32. The stock has risen 33.56% year to date. The following table provides the key financial ratios for Marriott International:

Key Ratio Value
Current Ratio 0.5
PEG 3.53
P/E 69.57
Forward P/E 19.29
Profit Margin 1.66
Return On Assets (ROA) 2.69
Return On Equity (ROE) 74.72
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Recent News

  • On July 05, 2012, Marriott Rewards, the highly acclaimed loyalty programme of Marriott International, and Ctrip.com International Ltd. (NASDAQ:CTRP) announced the launch of their global partnership that offers Chinese travellers a great variety of hotels and rewarding opportunities when they stay at 3,600 participating hotels around the world.
  • On July 05, 2012, Marriott International unveiled its "Li Yu" welcome programme that features a suite of customised amenities and services tailor-made for Chinese outbound travellers.
  • On June 29, 2012, Local authorities have approved the reopening of all the Marriott hotels that were evacuated as a result of the wildfires in Colorado Springs, Colorado and the surrounding area.
  • On June 18, 2012, Marriott International announced that they are on track to have 4,000 hotels in 90 countries across its 14-brand lodging portfolio by 2014. With 115,000 hotel rooms in its development pipeline, it could open between 90,000 and 105,000 new rooms around the world in 2012 through 2014, not including the planned Gaylord acquisition.
  • On June 18, 2012, Marriott International announced the opening of Guangzhou Marriott Hotel Tianhe, the latest addition to the company's signature Marriott Hotels & Resorts brand.
  • On June 18, 2012, Marriott International and the Overseas Private Investment Corporation (OPIC) announced a partnership to support new environmentally-sustainable hotel development in growth markets in the Middle East, Africa, Latin America and the Caribbean.

Analyst Guidance and Earnings History

The second quarter revenues are expected to be $2.84 billion when compared to $2.97 billion for the same quarter last year. Earnings per share for the second quarter are expected to be 42 cents a share, up from 37 cents a share in the year-ago period.

The average price target from analyst for Marriott International is $42.45 with average rating is OVERWEIGHT
Out of the last 4 quarters, Marriott International has met or exceeded the EPS estimates 3 times. The following chart shows the Analyst estimates history and the actual EPS results:

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The following chart shows the annual summary of Sales and Net income for Marriott International:
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Competition

Hyatt Hotels Corporation (NYSE:H), Intercontinental Hotels Group PLC (NYSE:IHG), Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT), and Choice Hotels International Inc (NYSE:CHH) are considered as major competitors for Marriott International and the table below provides the key metrics for these companies:
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Sources: Some of the data is taken from Google Finance, Yahoo Finance, Nasdaq, Finviz and investor sites.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in MAR over the next 72 hours.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.