Marriott International, Inc. :MAR-US: Earnings Analysis: 2016 By the Numbers : February 21, 2017

Marriott International, Inc. reports financial results for the year ended December 31, 2016.

We analyze the earnings along side the following peers of Marriott International, Inc. – Choice Hotels International, Inc., Hilton Worldwide Holdings, Inc., Wyndham Worldwide Corporation and Hyatt Hotels Corporation Class A (CHH-US, HLT-US, WYN-US and H-US) that have also reported for this period.

Highlights

  • Gross margins widened from 13.75% to 14.40% compared to the same period last year, operating (EBITDA) margins now 11.26% from 10.48%.
  • One-time items weakened operating performance.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:

2016 2015 2014 2013 2012
Relevant Numbers (Annual)
Revenues 17072 14476 13795 12781 11814
Revenue Growth (YOY) N/A N/A N/A N/A N/A
Earnings 780 859 753 626 571
Earnings Growth (YOY) -9.2 14.08 20.29 9.63 188.38
Net Margin 4.57 5.93 5.46 4.9 4.83
EPS 2.64 3.15 2.54 2 1.72
Return on Equity N/A N/A N/A N/A N/A
Return on Assets 12.82 13.27 11.03 9.53 9.32

Access our Ratings and Scores for Marriott International, Inc.

Earnings Growth Analysis

The company’s year-on-year earnings decline did not come as a result of a contraction in gross margins or because of any cost control issues. Both gross margins and operating margins (EBITDA) margins actually improved over this time frame. Gross margins went from 13.75% to 14.40%, while operating margins improved from 10.48% to 11.26% over this period. For comparison, gross margins were 13.75% and EBITDA margins 10.48% in the immediate last period.

Gross Margin Versus EBITDA Margin

Quadrant label definitions. Hover to know more

Differentiated; Low Cost, Commodity; Low Cost, Commodity; High Cost, Differentiated; High Cost

Margins

The expansion in operating (EBIT) margins from 9.63% to 10.27% has also impacted the company’s earnings growth. However, one-time items have been a drag on the operating performance. As a result, the company’s pretax margins contracted from 8.67% to 6.94%.

EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables
EBIT Margin History
PreTax Margin History

Access our Ratings and Scores for Marriott International, Inc.

Company Profile

Marriott International, Inc. is a diversified global lodging company, which engages in the operation and franchises of hotels, corporate housing properties, and timeshare properties. It operates through the following business segments: North American Full-Service; North American Limited-Service; and International. The North American Full-Service segment includes The Ritz-Carlton, EDITION, JW Marriott, Autograph Collection Hotels, Renaissance Hotels, Marriott Hotels, and Gaylord Hotels. The North American Limited-Service segment comprises of AC Hotels by Marriott, Courtyard, Residence Inn, SpringHill Suites, Fairfield Inn & Suites, and TownePlace Suites properties. The International segment involves The Ritz-Carlton, Bulgari Hotels & Resorts, EDITION, JW Marriott, Autograph Collection Hotels, Renaissance Hotels, Marriott Hotels, Marriott Executive Apartments, AC Hotels by Marriott, Courtyard, Residence Inn, SpringHill Suites, Fairfield Inn & Suites, TownePlace Suites, Protea Hotels, and Moxy Hotels. The company was founded in 1997 and is headquartered in Bethesda, MD.

CapitalCube does not own any shares in the stocks mentioned and focuses solely on providing unique fundamental research and analysis on approximately 50,000 stocks and ETFs globally. Try any of our analysis, screener or portfolio premium services free for 7 days. To get a quick preview of our services, check out our free quick summary analysis of MAR-US.