NASDAQ$MAR

Marriott International Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Marriott's Q3 2023 earnings were released, showcasing strong RevPAR growth and increased profitability.

Marriott International reported a strong third quarter in 2023, with significant growth in RevPAR, net income, and adjusted EBITDA. The company raised its full-year RevPAR growth guidance and expects to return substantial capital to shareholders.

  • Worldwide RevPAR increased by 8.8 percent, with international markets showing a 21.8 percent increase.
  • Reported diluted EPS was $2.51, compared to $1.94 in the previous year.
  • Net income reached $752 million, up from $630 million in the third quarter of 2022.
  • Adjusted EBITDA totaled $1,142 million, compared to $985 million in the prior year.

Headline financials

Total Revenue

$5.93B

Previous: $5.31B+11.6%
EPS (adj)

$2.11

Previous: $1.69+24.9%
Worldwide RevPAR Growth

8.8%

Previous: 36.3%-75.8%
Adjusted EBITDA

$1.14B

Previous: $985M+15.9%
Total Debt

$11.8B

Previous: $9.4B+25.5%
Cash and Equivalents

$700M

Previous: $1B-30.0%
Capital Expenditures

-$318M

Previous: -$192M-65.6%
Free Cash Flow

$434M

Previous: $438M-0.9%
Net Income

$752M

Previous: $630M+19.4%
Operating Income

$1.1B

Previous: $958M+14.7%
Gross Profit

$5.93B

Previous: $5.31B+11.6%
Cash & Equivalents

$717M

Previous: $1.05B-31.4%
Total Assets

$25.3B

Previous: $24.8B+2.0%
Stock-Based Comp

$54M

Previous: $48M+12.5%

Revenue & EPS history

Marriott · Revenue · Quarterly

$5.93B

Q3 2023+11.6%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Marriott · $1.27B total across 3 segments · Q3 2023

  • Franchise and Base Management Fees
    $1.05B+10.6%
  • Incentive Management Fees
    $143M+34.9%
  • Owned, Leased, and Other Revenue, Net
    $70M+59.1%

Forward guidance

Marriott anticipates full year 2023 net rooms growth of 4.2 to 4.5 percent. The company expects full year 2023 worldwide RevPAR growth guidance to 14 to 15 percent year over year and expects to return $4.3 billion to $4.5 billion to shareholders through share repurchases and dividends.

Tailwinds

  • Worldwide RevPAR growth of 6% to 7.5% for Q4 2023.
  • U.S. & Canada RevPAR growth of 3% to 4% for Q4 2023.
  • International RevPAR growth of 14% to 16% for Q4 2023.
  • Gross fee revenues of $1,185 to $1,215 million for Q4 2023.
  • Adjusted EBITDA of $1,115 to $1,150 million for Q4 2023.

Headwinds

  • General, administrative, and other expenses of approximately $255 million for Q4 2023.
  • Investment spending of $900 to $950 million.
  • Guidance excludes cost reimbursement revenue.
  • Guidance excludes reimbursed expenses.
  • Guidance excludes merger-related charges and other expenses.

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 Q3 2023

Historical avgQ3 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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