NASDAQ$MAR

Marriott International Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported strong Q4 2022 results driven by RevPAR growth and strategic cost management.

Marriott International reported a strong fourth quarter in 2022, with comparable systemwide constant dollar RevPAR increasing by 28.8% worldwide compared to Q4 2021. The company's reported diluted EPS was $2.12, and adjusted diluted EPS was $1.96. Net income totaled $673 million, and adjusted EBITDA reached $1,090 million.

  • Worldwide RevPAR grew 5% compared to 2019, driven by a 13% increase in ADR.
  • U.S. & Canada RevPAR increased 5% over the 2019 quarter, driven by further improvement in occupancy and an 11% increase in ADR.
  • Group demand more than fully recovered, leading to fourth quarter group revenues 10% above pre-pandemic levels.
  • The company added 145 properties (22,589 rooms) to its worldwide lodging portfolio.

Headline financials

Total Revenue

$5.92B

Previous: $4.45B+33.2%
EPS (adj)

$1.96

Previous: $1.30+50.8%
Worldwide RevPAR Growth

28.8%

Previous: 124.5%-76.9%
Adjusted EBITDA

$1.09B

Previous: $741M+47.1%
Capital Expenditures

$140M

Previous: $69M+102.9%
Free Cash Flow

$301M

Previous: $363M-17.1%
Net Income

$673M

Previous: $468M+43.8%
Operating Income

$996M

Previous: $635M+56.9%
Gross Profit

$1.28B

Previous: $902M+41.8%
Cash & Equivalents

$507M

Previous: $1.39B-63.6%
Total Assets

$24.8B

Previous: $25.6B-2.9%
Stock-Based Comp

$48M

Previous: $44M+9.1%

Revenue & EPS history

Marriott · Revenue · Quarterly

$5.92B

Q4 2022+33.2%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Marriott · $1.53B total across 3 segments · Q4 2022

  • Franchise and Base Management Fees
    $945M+28.2%
  • Owned, Leased, and Other Revenue, Net
    $396M+21.5%
  • Incentive Management Fees
    $186M+97.9%

Forward guidance

Marriott anticipates continued growth, though macroeconomic concerns persist. Q1 2023 is expected to benefit from easier comparisons to Q1 2022. Full year RevPAR is projected to grow between 6% and 11% worldwide.

Tailwinds

  • Global booking trends remain robust.
  • Worldwide RevPAR was up 51.6 percent year over year in January.
  • Gross fee revenues are expected to be $1,045 to $1,065 million for Q1 2023.
  • Adjusted EBITDA is expected to be $980 to $1,005 million for Q1 2023.
  • Adjusted EPS diluted is expected to be $1.82 to $1.88 for Q1 2023.

Headwinds

  • Macroeconomic environment persist around the world
  • Less visibility in forecasting the company’s financial performance for full year 2023
  • The low end of the range reflects a meaningful softening of the global economy beginning in the second quarter
  • Worldwide RevPAR roughly flat compared to 2022 in the second half of the year.
  • The high end of the range reflects relatively steady global economic conditions throughout 2023, with continued resilience of travel demand across customer segments and markets.

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 Q4 2022

Historical avgQ4 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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