NASDAQ$MAR

Marriott International Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Marriott's Q2 2020 results were dramatically impacted by the COVID-19 global pandemic and efforts to contain it.

Marriott International reported a net loss of $234 million for Q2 2020, a significant downturn compared to the $232 million net income in Q2 2019. The adjusted EBITDA totaled $61 million, a sharp decrease from the $952 million in the same quarter of the previous year. The company's RevPAR declined significantly worldwide due to the pandemic, but there are steady signs of demand returning, particularly in Greater China.

  • Worldwide RevPAR declined 84.4 percent, with North America down 83.6 percent and international markets down 86.7 percent.
  • Reported diluted loss per share was $0.72, compared to a $0.69 EPS in the year-ago quarter; adjusted diluted loss per share was $0.64, compared to a $1.56 EPS in Q2 2019.
  • Reported net loss was $234 million, compared to a $232 million net income in the year-ago quarter; adjusted net loss was $210 million, compared to a $525 million net income in Q2 2019.
  • Adjusted EBITDA totaled $61 million, compared to $952 million in the second quarter of 2019, including $36 million of bad debt expense related to COVID-19.

Headline financials

Total Revenue

$1.46B

Previous: $5.31B-72.4%
EPS (adj)

-$0.64

Previous: $1.56-141.0%
Worldwide RevPAR Growth

-84.4%

No prior period
Adjusted EBITDA

$61M

Previous: $952M-93.6%
Total Debt

$11.8B

No prior period
Capital Expenditures

-$79M

Previous: -$142M+44.4%
Free Cash Flow

-$313M

Previous: $90M-447.8%
Net Income

-$234M

Previous: $232M-200.9%
Operating Income

-$154M

Previous: $409M-137.7%
Gross Profit

$1.46B

Previous: $5.31B-72.4%
Cash & Equivalents

$2.28B

Previous: $284M+703.9%
Total Assets

$25.7B

Previous: $24.9B+3.2%
Stock-Based Comp

$50M

Previous: $50M+0.0%

Revenue & EPS history

Marriott · Revenue · Quarterly

$1.46B

Q2 2020-72.4%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Marriott · $162M total across 3 segments · Q2 2020

  • Franchise and Base Management Fees
    $222M-73.4%
  • Incentive Management Fees
    $12M-92.7%
  • Owned, Leased, and Other Revenue, Net
    -$72M-182.8%

Forward guidance

Due to the numerous uncertainties associated with COVID-19, Marriott cannot presently estimate the financial impact of this unprecedented situation, which is highly dependent on the severity and duration of the pandemic and its impacts, but expects that COVID-19 will continue to be material to the company’s results.

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 Q2 2020

Historical avgQ2 2020

+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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