What's Happening With MAR
Hotel operator Marriott Int’l (MAR) is expected to report its first-quarter results after the market close May 8, with the consensus calling for earnings of $1.25 per share. During the same period last year the company earned $1.01 per share, and the stock has appreciated a modest 1.2% year to date.
MAR was recently trading at $135.33, down $13.88 from its 12-month high and $39.44 above its 12-month low. Overall technical indicators for MAR are neutral with a sideways trend. The stock has recent support above $130.75, and recent resistance below $142.50. Of the 15 analysts who cover the stock, four rate it a “strong buy”, two rate it a “buy”, and nine rate it a “hold”. MAR gets a score of 68 from InvestorsObserver’s Stock Score Report.
Resort and hotel operators were strong in 2017, with strength in the underlying economy and low unemployment driving investor enthusiasm. Marriott has enjoyed strong earnings growth of 19.3% per annum over the last five years, and with the economy still on solid ground analysts see additional profit growth moving forward. Marriott is expected to enjoy annual earnings growth of 16.8% for the next five years, which should keep strength under the stock moving forward. As the overall market has cooled in recent months, MAR shares have trended sideways, but it will resume its upward trend should the broader market find its footing. MAR’s valuation is a bit high, with a forward P/E of 21.9, but given the strong earnings growth there is still upside potential. The last four quarters the company has posted big earnings surprises, and traders expect another big beat this quarter with a whisper number of $1.32 versus the consensus $1.25. MAR is trading at $135.33 with an average price target of $142.50.
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.