Marriott gains in shares on earnings beat, bullish travel forecast (NASDAQ: MAR)
Marriott International (NASDAQ: MAR) stocks edged higher on Tuesday after beating earnings estimates and expressing optimism about sustained travel demand in 2022.
For the second quarter, the Maryland-based hotel operator saw its revenue accelerate by 69.5% compared to the previous one. year to $5.34 billion while Adjusted EPS rose to $1.80. Analysts had expected the company to gross $4.96 billion and $1.57 billion, respectively. RevPAR increased 70.6% globally, driven by markets outside of North America, and exceeded 2019 levels through the end of the second quarter.
“With increased demand across all customer segments throughout the quarter and the easing of travel restrictions in nearly every country, global RevPAR surpassed 2019 levels in June,” said CEO Anthony Capuano. “Marriott’s second quarter results highlight consumers’ love of travel.”
He added that he saw “no signs of a slowdown in leisure travel” in the third quarter. The uptrend helped the company set a full-year EPS forecast in the range of $6.33 to $6.59, well above the consensus estimate of $5.99. The return to profitable growth also allowed the company to resume share buybacks and strengthen shareholder return programs.
“Looking forward, we are optimistic about our financial outlook and strong cash generation and expect to return more than $2.2 billion to shareholders in the form of dividends and share buybacks in 2022,” he said. said Capuano.
Marriott International (MAR) stock gained 1.89% in premarket trading after the earnings release.