Should investors be concerned about MAR's Q2 2024 miss?

**Marriott International's (MAR) Q2 2024 miss may not be a cause for immediate concern for investors**, considering the broader context of the company's performance and market conditions. Here's a detailed analysis:

1. **Revenue Growth and Adjustments**: Marriott's Q2 2024 revenue was higher than expected, with a 6.4% year-over-year increase, reaching $5.97 billion. This beat the consensus mark by 0.1%. Although the company missed the EPS estimate, with a reported $2.13 per share, compared to the expected $2.17, the adjusted EPS took into account a special tax item, showing resilience in operational income.
2. **Positive Operational Trends**: Marriott's global RevPAR (Revenue per Available Room) increased by 4.2%, with occupancy rates reaching nearly 66%. The company's group RevPAR grew by 6% globally, and both leisure and business transient segments showed positive trends. These indicators suggest a robust demand for Marriott's services.
3. **Strategic Developments**: Marriott's expansion into new markets and the integration of nearly 37,000 rooms from MGM Resorts International reflect strategic growth initiatives. The company's development pipeline includes over 3,400 properties and nearly 547,000 rooms, indicating a strong future revenue potential.
4. **Market Conditions and Outlook**: Despite the Q2 miss, Marriott raised its full-year 2024 earnings and capital returns guidance, fueled by its diverse global portfolio and resilient demand for travel. The company anticipates worldwide RevPAR to increase by 3%-5% for the year, with adjusted earnings per share (EPS) projected at $9.31-$9.65, up from the initial guidance of $9.18-$9.52.
5. **Analyst Ratings and Price Targets**: Analysts have maintained a neutral to positive stance on Marriott, with recent price target increases and a consensus rating of "Hold." This suggests that the market may view the Q2 miss as a temporary setback rather than a fundamental issue with the company's long-term prospects.

In conclusion, while Marriott's Q2 2024 performance had some shortcomings, the overall positive trends in revenue growth, strategic expansions, and optimistic future outlook may alleviate investor concerns. The company's ability to adapt to market conditions and maintain a strong market position could mitigate the impact of any short-term misses. Investors should monitor Marriott's performance closely, considering both the company's internal growth strategies and external market factors that may influence its future results.