What's Happening With MAR
Resort chain Marriot (MAR) will report its second-quarter results after the market close August 6, with the consensus calling for earnings of $1.36 per share. During the same period last year the company earned $1.13 per share, and the stock has fallen 4.5% on the year.
MAR was recently trading at $127.75 down $21.46 from its 12-month high and $30.85 above its 12-month low. InvestorsObserver’s Stock Score Report gives MAR a 65 long-term technical score and a 69 short-term technical score. The stock has recent support above $125 and recent resistance below $133. Of the 15 analysts who cover the stock 4 rate it Strong Buy, 1 rates it Buy, 10 rate it Hold. MAR gets a score of 63 from InvestorsObserver’s Stock Score Report.
MAR has been stuck in a fairly tight sideways trend for the better part of the year, but is in jeopardy of falling through support and making a big move lower. If the company puts up disappointing numbers, and the stock dips below $125, there could be significant downside. The stock’s valuation is a bit of a concern, with a trailing P/E of 45.1 and a forward P/E of 27, so current shareholders should definitely have an exit strategy in place just in case the quarterly numbers do not live up to expectations and the stock moves lower. The company has a good track record of posting better than expected profits, but last quarter sales were significantly lower than what analysts had forecast, and the company will need to turn that around if there is any chance of MAR erasing some of its recent losses. The street expects a small earnings beat, with a whisper number of $1.41, but the market will be closely watching the company’s revenue. Analysts expect sales of $6.01 billion during the quarter, and anything lower than that number could drive shares below the stock’s $125 support level.
About Marriott International
Marriott operates 1.35 million rooms across roughly 30 brands. Luxury represents nearly 10% of total rooms, while full service, limited service, and timeshares are 45%, 44%, and 2% of all units, respectively. Marriott, Courtyard, and Sheraton are the largest brands, while Autograph, Tribute, Moxy, Aloft, and Element are newer lifestyle brands. Managed and franchised represent 95% of total rooms. North America composes 67% of total rooms. Managed, franchise, and incentive fees represent the vast majority of revenue and profitability for the company.