Marriott Gears Up for Q4 Earnings: What's in the Offing for the Stock?

Marriott International, Inc. MAR is scheduled to release fourth-quarter 2024 results on Feb. 11, 2025, before the opening bell. In the previous quarter, the company’s earnings missed the Zacks Consensus Estimate by 2.2%.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.MAR’s Trend in Estimate RevisionThe Zacks Consensus Estimate for fourth-quarter bottom line is pegged at $2.38, indicating a decline of 33.3% from $3.57 reported in the year-ago quarter.For revenues, the consensus mark is pegged at $6.40 billion, implying growth of 5% from the prior-year quarter’s reported figure.Let us look at how things might have shaped in the quarter to be reported.Key Factors to NoteMarriott’s top line in fourth-quarter 2024 is likely to have been aided by revenue per available room (RevPAR) and average daily rate (ADR) growth. The company has been benefiting from robust global travel demand, driving growth in international markets and steady performance in the United States and Canada, along with solid global booking trends.Moreover, Marriott’s focus on unit expansion, increased co-branded credit card fees, benefits from travel and loyalty program and the launch of MGM Collection with Marriott Bonvoy are likely to have aided its fourth-quarter performance.Owing to the aforementioned tailwinds, our model predicts gross fee revenues to be $1.30 billion, up 5.3% year over year. We expect RevPAR in worldwide and international markets to grow 2.9% to $124.6 and 7.1% to $128.23, respectively, year over year. We also expect Asia Pacific RevPAR to grow 3.8% to $130.2 compared with the prior year.However, high costs and the election cycle are likely to have negatively impacted the results. The company expects fourth-quarter RevPAR to have remained consistent with the third quarter. However, management noted that the U.S. election cycle is likely to have weighed on results, with this year's impact predicted to be twice as significant as previous elections.For the fourth quarter, our model expects the company’s total expenses to be $5.4 billion, up 0.5% year over year.Marriott International, Inc. Price and EPS Surprise Marriott International, Inc. price-eps-surprise | Marriott International, Inc. QuoteWhat Our Model Predicts About MAROur proven model predicts an earnings beat for Marriott this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here.MAR’s Earnings ESP: MAR has an Earnings ESP of +2.63%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.MAR’s Zacks Rank: MAR currently carries a Zacks Rank #3 (Hold).Other Stocks Poised to Beat on EarningsHere are some other companies in the Zacks Consumer Discretionary sector, which, according to our model, also have the right combination of elements to post an earnings beat this season.Life Time Group Holdings, Inc. LTH has an Earnings ESP of +14.29% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.LTH is expected to register a 10.5% increase in earnings for the to-be-reported quarter. It reported earnings beat in three of the trailing four quarters and missed on one occasion, with an average surprise of 46.2%.Trip.com Group Limited TCOM currently has an Earnings ESP of +0.97% and a Zacks Rank of 1.TCOM reported earnings beat in each of the trailing four quarters, with an average surprise of 42.8%. Its earnings for the to-be-reported quarter are expected to decrease 7.1%.Rush Street Interactive, Inc. RSI currently has an Earnings ESP of +22.22% and a Zacks Rank of 1.RSI’s earnings for the to-be-reported quarter are expected to increase 800%. It reported earnings beat in each of the trailing four quarters, the average surprise being 225%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marriott International, Inc. (MAR): Free Stock Analysis Report Trip.com Group Limited Sponsored ADR (TCOM): Free Stock Analysis Report Rush Street Interactive, Inc. (RSI): Free Stock Analysis Report Life Time Group Holdings, Inc. (LTH): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks