Marriott International reports $7.07 billion revenue, below estimates, as cooling guidance offsets earnings beat of $3.19 per share.
Marriott International Inc (MAR) shares fell 4% in pre-market trading after reporting second-quarter revenue of $7.07 billion, missing analyst estimates of $7.17 billion to $7.26 billion. Adjusted earnings reached $3.19 per share, surpassing forecasts of $3.05 to $3.08, but the revenue shortfall overshadowed the beat.
Excluding $5 billion in cost reimbursement revenue, adjusted revenue rose 11% to $2.01 billion. The company guided third-quarter earnings to $2.74 to $2.82 per share, reflecting a slowdown from the 13% growth in the second quarter. Full-year earnings guidance of $11.64 to $11.81 barely exceeds consensus.
International performance weakened, with revenue per available room down 0.5%, driven by a 43% decline in the Middle East. The company also absorbed a $68 million charge during the quarter.