Marriott International’s revenue slides 57.3% in the fiscal third quarter
- Marriott International’s revenue slides 57.3% in the third quarter.
- The hospitality company's net income prints at £76.03 million.
- Marriott says occupancy in Q3 nearly doubled in North America.
Marriott International Inc. (NASDAQ: MAR) published its earnings report for the fiscal third quarter on Friday. The American multinational swung to an unexpected profit in the recent quarter, and its revenue contracted less than the analysts’ estimates.
Marriott still refrained from giving its guidance for the full year citing the Coronavirus uncertainties. In the prior quarter (Q2), Marriott had reported £179.47 million of loss, as per the report published in August.
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Marriott International was reported about 1% up in premarket trading on Friday. Shares of the company gained another 2% in the later hours. On a year to date basis, the stock is now close to 30% down. Interested in investing in the stock market online? Here’s a simple guide to get you started.
Marriott’s Q3 financial results versus analysts’ estimates
The diversified hospitality company said that its net income in the third quarter printed at £76.03 million that translates to 23.57 pence per share. In comparison, its net income had come in at a much higher £294.23 million or 88 pence per share in the same quarter last year.
Adjusted for one-time items, Marriott earned 4.56 pence per share in the recent quarter versus the year-ago figure of £1.12 per share. FactSet Consensus stood at 6.08 pence of per-share loss for Marriott in Q3.
In terms of revenue, the Bethesda-based company reported a 57.3% year over year decline in the third quarter to £1.71 billion, that topped experts’ forecast of £1.69 billion, as per FactSet. In an announcement earlier this week, Marriott said that it had signed an agreement with Asset World Corporation that will help it expand its portfolio in Thailand.
Marriott says occupancy in Q3 nearly doubled in North America
Marriott said that its worldwide RevPAR (revenue per available room) saw a 65.9% annualised decline in the recent quarter, following an even broader 84.4% decline in fiscal Q2. At 37%, occupancy almost doubled in North America as compared to the prior quarter.
In China, RevPAR printed at 26%, and occupancy stood at 61% in Q3. CEO Arne Sorenson commented on the financial results on Friday and said:
“While COVID-19 is still significantly impacting our business, our results for the third quarter showed continued improvement in demand trends around the world.”
At the time of writing, Marriott International is valued at £25.74 billion and has a price to earnings ratio of 75.39.