NASDAQ$MAR

Marriott International Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Marriott's Q1 2023 earnings exceeded expectations, driven by strong RevPAR growth and strategic acquisitions.

Marriott International reported a strong first quarter in 2023, with significant increases in RevPAR, net income, and EPS. The company's performance was boosted by the recovery in international markets and solid demand in the U.S. & Canada. Marriott also raised its full-year outlook, reflecting confidence in continued growth.

  • Worldwide RevPAR increased by 34.3 percent, with international markets growing by 63.1 percent.
  • Reported diluted EPS was $2.43, compared to $1.14 in the previous year.
  • Net income reached $757 million, a significant increase from $377 million in the first quarter of 2022.
  • The company added approximately 11,000 rooms globally and repurchased 6.8 million shares for $1.1 billion.

Headline financials

Total Revenue

$5.62B

Previous: $4.2B+33.7%
EPS (adj)

$2.09

Previous: $1.25+67.2%
Worldwide RevPAR Growth

34.3%

Previous: 96.5%-64.5%
Adjusted EBITDA

$1.1B

Previous: $759M+44.7%
Capital Expenditures

-$95M

Previous: -$49M-93.9%
Free Cash Flow

$662M

Previous: $328M+101.8%
Net Income

$757M

Previous: $377M+100.8%
Operating Income

$951M

Previous: $558M+70.4%
Gross Profit

$5.62B

Previous: $4.2B+33.7%
Cash & Equivalents

$554M

Previous: $1.04B-46.8%
Total Assets

$24.9B

Previous: $25.2B-1.5%
Stock-Based Comp

$37M

Previous: $44M-15.9%

Revenue & EPS history

Marriott · Revenue · Quarterly

$5.62B

Q1 2023+33.7%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Marriott · $1.21B total across 3 segments · Q1 2023

  • Franchise and Base Management Fees
    $932M+30.7%
  • Incentive Management Fees
    $201M+97.1%
  • Owned, Leased, and Other Revenue, Net
    $75M-77.0%

Forward guidance

Marriott is raising its full-year 2023 guidance, with robust global booking trends continuing into the second quarter. However, macroeconomic uncertainty limits visibility for the second half of the year.

Tailwinds

  • Worldwide RevPAR growth of 10% to 12% is expected for the second quarter of 2023.
  • Full-year 2023 worldwide RevPAR growth is projected to be between 10% and 13%.
  • Gross fee revenues are anticipated to range from $1,205 million to $1,225 million for the second quarter.
  • Adjusted EBITDA is forecasted to be between $1,140 million and $1,165 million for the second quarter.
  • Adjusted diluted EPS is expected to be between $2.09 and $2.15 for the second quarter.

Headwinds

  • Macroeconomic uncertainty impacts visibility for the second half of 2023.
  • Guidance excludes cost reimbursement revenue.
  • Guidance excludes reimbursed expenses.
  • Guidance excludes merger-related charges and other expenses.
  • Guidance does not reflect any asset sales that may occur during the year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.1%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.8%

Avg return

30 days after

52%

36 / 69 earnings

Positive

+17.2%

Q3 2020

Best reaction

-9.0%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%-1.8%+10.9%
Q4 2025+8.5%+6.8%-4.5%
Q3 2025+3.1%+10.3%+12.2%
Q2 2025+0.2%+0.3%+3.8%
Q1 2025+2.0%+4.3%+5.1%
Q4 2024-5.4%-6.9%-22.1%
Q3 2024-0.3%+7.8%+11.2%
Q2 2024-8.4%-11.5%-1.7%
Q1 2024-0.2%+0.3%-2.1%
Q4 2023-5.4%-2.9%-0.3%
Q3 2023+1.3%+3.0%+10.8%
Q2 2023+0.8%+0.6%+0.8%
Q1 2023+4.9%+3.8%+0.6%
Q4 2022+3.6%-1.1%-7.6%
Q3 2022-2.6%-1.6%+8.3%
Q2 2022-0.1%-1.6%-3.5%
Q1 2022+2.7%-5.3%+0.9%
Q4 2021+7.0%+2.1%-0.1%
Q3 2021+2.5%+5.2%-6.3%
Q2 2021-4.8%-2.3%-6.5%
Q1 2021-3.4%-2.3%-2.0%
Q4 2020+3.8%+13.9%+15.9%
Q3 2020+17.2%+15.3%+34.4%
Q2 2020+3.4%+2.4%+8.8%
Q1 2020-9.0%-8.5%+17.7%
Q4 2019-3.6%-0.9%-36.5%
Q3 2019+4.4%+4.0%+8.7%
Q2 2019-5.5%-2.6%-7.6%
Q1 2019-7.0%-2.7%-2.2%
Q4 2018-2.0%-1.3%-1.4%
Q3 2018-5.3%-3.2%-6.1%
Q2 2018-2.9%-6.3%-2.5%
Q1 2018+0.9%+2.3%+2.0%
Q4 2017+0.5%-1.5%+0.3%
Q3 2017-1.6%-1.5%+4.8%
Q2 2017-1.0%-5.4%-3.1%
Q1 2017+5.6%+5.6%+8.3%
Q4 2016+1.8%+1.7%+0.5%
Q3 2016+4.9%+5.4%+20.6%
Q2 2016-0.2%-0.7%+1.6%
Q1 2016+3.3%
Q4 2015-0.2%
Q3 2015-1.3%
Q2 2015-2.6%
Q1 2015-1.6%
Q4 2014+2.2%
Q3 2014+5.4%
Q2 2014-1.1%
Q1 2014+3.5%
Q4 2013+0.8%
Q3 2013+1.1%
Q2 2013+0.5%
Q1 2013-0.5%
Q4 2012-3.7%
Q3 2012+0.8%
Q2 2012-6.8%
Q1 2012-1.8%
Q4 2011+0.6%
Q3 2011+2.9%
Q2 2011-1.3%
Q1 2011-5.1%
Q4 2010-4.7%
Q3 2010+0.0%
Q2 2010-2.3%
Q4 2007+1.7%
Q1 2010+1.4%
Q3 2009+1.7%
Q2 2009+0.1%
Q4 2009+0.1%

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