Earnings To Watch: Marriott (MAR) Reports Q1 Results Tomorrow

Global hospitality company Marriott (NASDAQ:MAR) will be announcing earnings results tomorrow before the bell. Here's what to look for.

Marriott missed analysts' revenue expectations by 1.7% last quarter, reporting revenues of $6.10 billion, up 2.9% year on year. It was a slower quarter for the company, with a miss of analysts' revenue estimates.

Is Marriott a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Marriott's revenue to grow 5.9% year on year to $5.95 billion, slowing from the 33.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.16 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Marriott has missed Wall Street's revenue estimates three times over the last two years.

Looking at Marriott's peers in the hotels, resorts and cruise lines segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Wyndham's revenues decreased 2.6% year on year, missing analysts' expectations by 1.1%, and Travel + Leisure reported revenues up 4.2%, topping estimates by 1.3%. Wyndham traded up 4.8% following the results while Travel + Leisure's stock price was unchanged.

Read our full analysis of Wyndham's results here and Travel + Leisure's results here.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the hotels, resorts and cruise lines stocks have fared somewhat better, they have not been spared, with share prices down 6.2% on average over the last month. Marriott is down 4.3% during the same time and is heading into earnings with an average analyst price target of $246.3 (compared to the current share price of $240.49).

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