Marriott International’s revenues declined 57.3% in the third quarter.
The hospitality company’s net profit is £76.03 million.
According to Marriott, occupancy in North America almost doubled in the third quarter.
Marriott International Inc. (NASDAQ: MAR) released its third quarter earnings report on Friday. The U.S. multinational made an unexpected profit in the last quarter and its revenues declined less than analysts had estimated.
Marriott continued to refrain from issuing its full-year forecast, citing the uncertainties surrounding the coronavirus. In the previous quarter (Q2), Marriott had reported a loss of £179.47 million, according to the report released in August.
Marriott International reported an increase of approximately 1% in pre-IPO trading on Friday. The company’s shares gained a further 2% in the later hours. In the course of the year to date, the share price has now fallen by almost 30%. Are you interested in investing in the stock market online? Here is a simple guide to help you get started.
Marriott’s financial results for the 3rd quarter compared to analysts’ estimates
The diversified hospitality company stated that its net profit for the third quarter was £76.03 million, or 23.57 pence per share. This compares to net profit of £294.23 million or 88 pence per share in the same quarter last year, which was significantly higher.
Adjusted for non-recurring items, Marriott earned 4.56 pence per share in the final quarter compared to £1.12 per share in the prior year. The FactSet Consensus for Marriott for the third quarter was a loss of 6.08 pence per share.
In terms of revenue, the Bethesda-based company reported a 57.3 percent year-on-year decline to £1.71 billion in the third quarter, exceeding the expert forecast of £1.69 billion according to FactSet. In an announcement earlier this week, Marriott said it had signed an agreement with Asset World Corporation that will help it expand its portfolio in Thailand.
According to Marriott, occupancy almost doubled in North America in the 3rd quarter
Marriott said its global RevPAR (revenue per available room) declined 65.9% on an annualized basis in the last quarter, after an even broader decline of 84.4% in the second quarter. At 37%, occupancy in North America nearly doubled quarter-on-quarter.
In China, RevPAR was printed at 26%, and occupancy in the third quarter was 61%. CEO Arne Sorenson commented on the financial results on Friday and said
“While COVID-19 continues to have a significant impact on our business, our third quarter results showed continued improvement in demand trends around the world.
At the time of writing, Marriott International is valued at £25.74 billion and has a P/E ratio of 75.39.