Marriott Shares Drop Despite Earnings Beat Due to Revenue Miss and Weak Guidance
Despite beating earnings expectations and raising its full-year outlook, Marriott International (NYSE:MAR) saw shares fall by 4% in pre-market trading. The decline was driven by a revenue miss of $7.07 billion against estimates ranging from $7.17 to $7.26 billion. A significant portion—over $5 billion—is cost reimbursement and not indicative of core performance, with adjusted revenue rising only modestly. Marriott also issued weaker-than-expected guidance for the second half, projecting a slowdown in earnings growth compared to Q2's 13%. Full-year adjusted earnings guidance barely exceeded analyst expectations. International markets were particularly weak, especially due to a sharp decline in Middle East performance. Additional costs from an asset impairment and litigation accrual further weighed on results. The stock had risen over 40% year-to-date, setting high expectations for positive reactions.
Tickers: $MAR