NASDAQ$MAR

Marriott International Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported outstanding results due to continued momentum in global lodging recovery.

Marriott International reported outstanding second quarter 2022 results, driven by increased demand across all customer segments and the easing of travel restrictions. Worldwide RevPAR surpassed 2019 levels in June, with a robust average daily rate and occupancy. The company resumed share repurchases and expects to return over $2.2 billion to shareholders in 2022.

  • Second quarter comparable systemwide constant dollar RevPAR increased 70.6 percent worldwide compared to the 2021 second quarter.
  • Second quarter reported diluted EPS totaled $2.06, compared to $1.28 in the year-ago quarter; adjusted diluted EPS totaled $1.80, compared to $0.79 in the second quarter 2021.
  • Second quarter reported net income totaled $678 million, compared to $422 million in the year-ago quarter; adjusted net income totaled $593 million, compared to $260 million in the second quarter 2021.
  • Adjusted EBITDA totaled $1,019 million in the 2022 second quarter, compared to $558 million in the second quarter 2021.

Headline financials

Total Revenue

$5.34B

Previous: $3.15B+69.5%
EPS (adj)

$1.80

Previous: $0.79+127.8%
Worldwide RevPAR Growth

70.6%

Previous: 262.6%-73.1%
Adjusted EBITDA

$1.02B

Previous: $558M+82.6%
Total Debt

$8.8B

Previous: $10.2B-13.7%
Cash and Equivalents

$500M

Previous: $700M-28.6%
Capital Expenditures

-$119M

Previous: -$70M-70.0%
Free Cash Flow

$559M

Previous: $352M+58.8%
Net Income

$678M

Previous: $422M+60.7%
Operating Income

$950M

Previous: $486M+95.5%
Gross Profit

$5.34B

Previous: $3.15B+69.5%
Cash & Equivalents

$546M

Previous: $664M-17.8%
Total Assets

$24.6B

Previous: $24.5B+0.5%
Stock-Based Comp

$52M

Previous: $43M+20.9%

Revenue & EPS history

Marriott · Revenue · Quarterly

$5.34B

Q2 2022+69.5%vs Q2 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Marriott · $1.44B total across 3 segments · Q2 2022

  • Franchise and Base Management Fees
    $938M+59.8%
  • Owned, Leased, and Other Revenue, Net
    $364M+1815.8%
  • Incentive Management Fees
    $135M+145.5%

Forward guidance

Marriott provided guidance for the third quarter and full year of 2022, including expectations for comparable systemwide constant dollar RevPAR, gross fee revenues, owned, leased, and other revenue, general and administrative expenses, adjusted EBITDA, and adjusted EPS.

Tailwinds

  • Worldwide RevPAR flat to +3% vs Third Quarter 2019.
  • U.S. & Canada RevPAR +1% to +4% vs Third Quarter 2019.
  • Gross fee revenues $1,010 to $1,050 million for Third Quarter 2022.
  • Adjusted EBITDA $927 to $972 million for Third Quarter 2022.
  • Adjusted EPS diluted $1.59 to $1.69 for Third Quarter 2022.

Headwinds

  • Worldwide RevPAR -6% to -3% vs Full Year 2019.
  • U.S. & Canada RevPAR -3% to flat vs Full Year 2019.
  • International RevPAR -13% to -10% vs Full Year 2019.
  • Gross fee revenues $3,930 to $4,030 million for Full Year 2022.
  • Adjusted EBITDA $3,682 to $3,792 million for Full Year 2022.

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 2022

Historical avgQ2 2022

+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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