Marriott International Exceeds Expectations in Q2; Anticipates Lower Earnings in Q3, Adjusts FY25 Forecast; Shares Increase - Revised Report
Marriott International Reports Q2 Earnings Above Estimates, Cautious Outlook for Q3 and FY2025
Marriott International Inc. (MAR) has announced its second-quarter earnings, with results surpassing market estimates. However, the company has issued a cautious outlook for the third quarter and fiscal year 2025.
In the second quarter, Marriott's earnings per share (EPS) grew 3 percent to $2.78 from $2.69 a year ago, despite a lower share count. This growth was also observed compared to the same period last year. The company's net earnings for the quarter were $763 million, a 1 percent decrease from $772 million last year.
The second-quarter revenue rose 4.7 percent to $6.744 billion from $6.439 billion last year, exceeding the Street's expectations. The adjusted earnings for the quarter were $728 million or $2.65 per share, compared to $716 million or $2.50 per share last year, marking a slight increase.
Marriott's adjusted EBITDA for the second quarter was $1.934 billion, compared to $1.882 billion last year. For the third quarter, the company expects adjusted EBITDA of $1.288 billion to $1.318 billion.
In the pre-market activity on the Nasdaq, Marriott shares were gaining around 6.1 percent to trade at $275.00. Analysts had expected the company to earn $2.62 per share in the second quarter, and their expectations for the third quarter are around $2.68 per share. However, Marriott has revised its Q3 2025 earnings outlook to a range of $2.31 to $2.39, which is below the consensus analyst estimate of $2.477 and another analyst forecast of $2.49 EPS for the quarter.
For fiscal year 2025, Marriott updated its full-year EPS guidance to between $9.85 and $10.08. This revision indicates a more cautious outlook compared to earlier analyst expectations. Worldwide comparable systemwide constant currency RevPAR growth is expected to be flat to 1 percent for the third quarter and 1.5 to 2.5 percent for fiscal 2025.
Despite the earnings revisions, Marriott has shown confidence in its cash flow by raising its quarterly dividend from $0.63 to $0.67 per share. Analyst ratings for Marriott remain mixed with a consensus price target around $280.11 and recommendations ranging from "hold" to "strong buy".
In summary, Marriott's revised Q3 2025 earnings outlook is modestly lower than analyst estimates and possibly its own previous projections, while the full-year guidance remains in a range that suggests stable but tempered growth expectations. The dividend increase is a positive signal amid these earnings revisions.
- Marriott International's earnings for Q2 surpassed estimations, indicating a promising performance in the finance sector.
- Despite the positive Q2 results, the company has expressed caution about its business outlook for Q3 and fiscal year 2025.
