VAC MARRIOTT is reporting earnings tomorrow. Based on historical financial data and news, what do you think will happen after earnings reporting? Do you feel the stock will increase or decrease?
7/31/2024 10:17am
**Marriott International's (MAR) upcoming earnings report is likely to influence its stock price, with the direction of the movement dependent on various factors.** Here's an analysis based on historical financial data and news:
1. **Recent Performance**: Marriott's stock (MAR.O) closed at $238.77 on July 30, 2024. The stock has experienced a slight increase of 2% over the last month.
|Ticker|Name|Closing Price|Date|code|market_code|
|---|---|---|---|---|---|
|MAR.O|Marriott|238.77|20240730|MAR|185|
2. **Analyst Expectations**:
- For the second quarter of 2024, analysts expect Marriott to report earnings per share (EPS) of $2.47, which is a slight increase from the $2.26 reported in the same quarter of the previous year.
- Total revenue is forecasted to be $6.47 billion, reflecting a 6.53% year-on-year increase.
3. **Historical Earnings Trends**:
- **Revenue Growth**: Marriott has shown a positive revenue trend, with a year-on-year growth rate of 6.45% as of the latest quarter.
- **Profitability**: The company's net income has experienced a significant decline of 25.5% year-on-year, which could be a concern for investors.
- **EPS Growth**: The diluted EPS has shown a quarter-over-quarter growth rate of 13.8% in the same period last year, slowing to 6.6% this quarter.
|Ticker|Name|Net Income year-on-year growth rate|Total Revenue year-on-year growth rate|Diluted EPS QoQ growth rate|Date|code|market_code|
|---|---|---|---|---|---|---|---|
|MAR.O|Marriott|-25.495376486129455|6.447016918967052||20240331|MAR|185|
4. **Market Sentiment**:
- **Recent Analyst Activity**: The majority of analysts covering Marriott have reconfirmed their estimates over the last 30 days, indicating stability in their expectations.
- **Peer Performance**: Marriott's peers in the hotels, resorts, and cruise lines segment have shown positive revenue growth, with Royal Caribbean and Carnival exceeding analysts' expectations.
5. **Stock Reaction to Earnings**: Based on historical data, earnings reports can lead to significant stock price movements. For example, Marriott's stock price changed by -5.58% following the previous earnings report.
6. **Future Outlook**: Marriott's development pipeline and loyalty program strength suggest potential for future growth.
Given these points, if the company meets or exceeds analyst expectations, there could be a positive reaction from the market, potentially leading to an increase in the stock price. Conversely, if the company misses expectations, especially in terms of net income, the stock might face downward pressure. However, market sentiment and broader industry trends also play a role in determining the stock's reaction to earnings.