Marriott's Profit Falls, While Revenue Rises in Latest Quarter -- Earnings Review

Date : 02/14/2018 @ 5:57PM
Source : Dow Jones News
Stock : Marriott International (MAR)
Quote : 137.97  0.1 (0.07%) @ 8:00PM

Marriott's Profit Falls, While Revenue Rises in Latest Quarter -- Earnings Review

Marriott International, Inc. (NASDAQ:MAR)
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6 Months : From Nov 2017 to May 2018

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   By Aisha Al-Muslim 
 

Marriott International Inc. (MAR) reported its fourth-quarter results after the close of trading Wednesday. Here's what you need to know.

PROFIT: Net income for the hotel chain dropped 18% to $201 million, or 54 cents a share, from $244 million, or 62 cents a share, for the same quarter a year before. Adjusted earnings were $415 million, or $1.12 a share, missing the $1-mark analysts polled by Thomson Reuters were looking for.

Adjusted fourth-quarter results exclude the $659 million gain on the disposition of the company's ownership interest in Avendra and a $567 million provisional tax charge resulting from the U.S. tax overhaul.

REVENUE: Revenue rose 7.5% to $5.88 billion, ahead of the consensus forecast of $5.63 billion.

GUIDANCE: For 2018, the company expects per-share earnings of $5.11 to $5.34, or $5.22 to $5.45 excluding the impact of its new accounting standard for reporting revenue. Analysts have modeled per-share earnings of $5.18.

TAX IMPACT: As a result of U.S. tax overhaul, the fourth quarter includes a $567 million charge. The charge is the net of a $745 million transition tax on accumulated foreign earnings, which will be paid over eight years, a $159 million tax benefit related to the revaluation of the company's net deferred tax liabilities at lower rates, and $19 million of other tax benefits. The company expects its tax rate in 2018 will decline to about 22%.

EMPLOYEE CONTRIBUTIONS: For 2018, the company plans to offer an additional one-time contribution to the Marriott International retirement-savings plans. The majority of participating associates at company-operated hotels, and corporate and regional offices in the U.S. should receive a $5-to-$1 company match of up to $1,000. It also expects to invest in global associate support programs.

STOCK MOVE: The stock has fallen 4.3% to $139 in after-hours trading Wednesday. Shares are up 65% in the last year.

 

Write to Aisha Al-Muslim at aisha.al-muslim@wsj.com

 

(END) Dow Jones Newswires

February 14, 2018 17:42 ET (22:42 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.

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