Marriott Misses Revenue, Warns on Room Growth as Middle East War Hits Sales
MAR sits 38% above its 52-week low of $253.755.
Summary
Marriott's Q2 revenue of $7.07B missed the $7.19B consensus, driven by a 43% plunge in Middle East RevPAR due to the Iran conflict. While adjusted EPS of $3.19 beat estimates, the top-line miss and management's warning that the worst impact may come in Q4 — when 35% of Middle East revenue is typically booked — spooked investors, sending shares down 5% to 6%. The company also guided Q3 adjusted EPS to $2.74-$2.82, below the $2.86 consensus, and expects annual net room growth at the low end of its 4.5-5% range because of construction delays in the region. Marriott has the highest Middle East exposure among major U.S. hotel chains, making it uniquely vulnerable to prolonged regional instability.
At the time of this announcement, MAR was trading at $351.22 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $92.6B. The 52-week trading range was $253.76 to $410.98. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.