Marriott to Post Q1 Earnings: What's in the Offing for the Stock?

Marriott International, Inc. MAR is scheduled to release first-quarter 2025 results on May 6, before the opening bell. In the previous quarter, the company’s earnings beat the Zacks Consensus Estimate by 2.9%.MAR’s Trend in Estimate RevisionThe Zacks Consensus Estimate for first-quarter bottom line is pegged at $2.27, indicating growth of 6.6% from $2.13 reported in the year-ago quarter. In the past 30 days, earnings estimates have witnessed downward revisions of 0.4%. (See the Zacks Earnings Calendar to stay ahead of market-making news.)For revenues, the consensus mark is pegged at $6.27 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 Note Ahead of MAR’s Q1 ResultsMarriott’s results in first-quarter 2025 are likely to be aided by an increase in revenue per available room (RevPAR) and average daily rate (ADR). The company has also been benefiting from its expansion efforts. With an extensive portfolio and strong brand position, its focus on expanding presence worldwide and capitalizing on the demand for hotels in international markets has been encouraging.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.Owing to the aforementioned tailwinds, our model predicts gross fee revenues to be $1.25 billion, up 3.6% year over year. We expect RevPAR in worldwide and international markets to grow 3.8% to $122.58 and 6% to $121.76, respectively, year over year. Our model also expects Asia Pacific RevPAR to grow 0.2% to $123.28 compared with the prior-year actual.On the other hand, our model predicts the worldwide ADR and occupancy to increase 1.6% and 144 basis points, respectively, in first-quarter 2025.The company’s significant progress on its multi-year digital and technology transformation of key systems, including reservations, property management and loyalty programs, bodes well. This transformation continues to unlock new revenue opportunities, enhance the efficient operating model, improve Marriott Bonvoy and elevate the digital experience for associates and customers. Marriott Bonvoy app downloads increased nearly 30% year over year in 2024, indicating rising customer reliance on mobile. This uptrend is likely to have continued in first-quarter 2025.However, high costs are likely to have negatively impacted the company’s bottom line. For the first quarter, our model expects the company’s total expenses to be $5.32 billion, up 4.3% 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 +0.88%. 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 stocks from the Zacks Consumer-Discretionary space that investors may consider, as our model shows that these, too, have the right combination of elements to beat estimates this time around.Atour Lifestyle Holdings Limited ATAT has an Earnings ESP of +6.45% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Atour Lifestyle is expected to register 19.2% growth in earnings for the to-be-reported quarter. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 5.2%.Choice Hotels International, Inc. CHH currently has an Earnings ESP of +0.94% and a Zacks Rank of 3.In the to-be-reported quarter, Choice Hotels’ earnings are expected to increase 10.2%. Choice Hotels’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 7.5%.Topgolf Callaway Brands Corp. MODG currently has an Earnings ESP of +20.00% and a Zacks Rank of 3.In the to-be-reported quarter, Topgolf Callaway’s earnings are expected to decrease 144.4%. Topgolf Callaway’s earnings beat the Zacks Consensus Estimate in the preceding quarter by 244.7%.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks 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 Choice Hotels International, Inc. (CHH): Free Stock Analysis Report Topgolf Callaway Brands Corp. (MODG): Free Stock Analysis Report Atour Lifestyle Holdings Limited Sponsored ADR (ATAT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks