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Marriott’s stock falls after profit misses by wide margin but revenue beats

Shares of Marriott International Inc.
MAR,
+1.38%

fell 1.7% in premarket trading Monday, after the hotel operator reported a first-quarter profit that was well below expectations but beat on revenue, while saying it believes lodging demand has stabilized in the face of the COVID-19 pandemic. Net income fell to $31 million, or 9 cents a share, from $375 million, or $1.09 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share came to 26 cents, below the FactSet consensus of 87 cents. The company said the results included guarantee reserves of $148 million, as well as impairment charges and bad debt expenses. Revenue fell 7% to $4.68 billion, but was above the FactSet consensus of $4.14 billion. Revenue per available room (RevPAR) fell 22.5%, after growing 3.2% for the first two months of the quarter. For April, RevPAR dropped about 90%. Marriott said occupancy has improved to about 20% over the past two weeks in North America. The company said it can’t provide a financial outlook given the uncertainty over the impacts of the pandemic. The stock has dropped 42.4% year to date through Friday, while the S&P 500
SPX,
+1.68%

has declined 9.3%.

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