Disappointing Q1 report from hospitality giant Marriott

By: Miguel A. Rodriguez

09:45, 14 September 2020

The hospitality giant felt the impact of the pandemic as the latest financial report shows.

Earlier today, Marriott International Inc released the financial report for the first quarter of 2020. The profit was below the expectations, but it surprised on revenue. The EPS dropped by 9 cents to $1.09, with a net income of $31 million from $375 million the same time last year. The adjusted EPS was of 26 cents, also below analysts' expectation of 87 cents.

Although it dropped by 7%, the revenue was above the $4.14 billion from consensuses, at $4.68 billion. The revenue per available room (RevPAR) grew in the first two months of the year 3.2%, but overall it fell 22.5%. In April, RevPAR dropped by 90%, but it managed to recover 20% in the past two weeks as the demand increased in North America. Also, in April, the number of bookings increased in China as the economy slowly reopened.

In today’s premarket, the stock price fell 1.75. The stock shed 42.4% since the beginning of the year until now. USA500 lost 9.3%. 

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Sources: marketwatch.com, wkzo.com

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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.