Marriott Stock Slips on Soft Outlook for Room Growth, Profit | Global News Avenue

Marriott International (InternationalMarch) Shares fell 4% Tuesday as hotel operator guidance missed forecasts for slower room growth.

The company sees adjustments for the current quarter Earnings per share (EPS) Within the $2.20 to $2.26 range, full-year adjusted EPS was $9.83 to $10.19. Analysts surveyed by Visible Alpha were searching for $2.35 and $10.58 respectively. Marriott’s net room growth is expected to be 4% to 5%, while the visible alpha estimate is 5.23%.

Marriott Q4 results are estimated

Outlook deviates from strong fourth quarter results. The company’s adjusted earnings per share was $2.45, with revenue up more than 5% year-on-year to $6.43 billion. Both exceeded the predictions.

CEO Anthony Capuano said the average daily growth rate (ADR) and occupancy rate of each available room (REVPAR) worldwide rose by 5%. Capuano increased the international Revpar growth by 7%, driven by strong casual demand, while the U.S. and Canada Revpar grew by more than 4% as all customer bases grew.

Marriott International shares hit record highs yesterday and despite falling today, they closed about 18% higher in the past year.