SNEAK PEEK: Marriott International’s Q2 Earnings

S&P 500 (NYSE:SPY) component Marriott International (NYSE:MAR) will unveil its latest earnings on Wednesday, July 11, 2012. Marriott International operates and franchises hotels and related lodging facilities throughout the world.

Marriott International Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 42 cents per share, a rise of 13.5% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 26% compared to last year’s $1.65.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported net income of 30 cents per share against a mean estimate of profit of 29 cents per share. In the fourth quarter of the last fiscal year, it missed forecasts by one cent.

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Stock Price Performance: Between April 10, 2012 and July 5, 2012, the stock price rose $3.11 (8.5%), from $36.47 to $39.58. The stock price saw one of its best stretches over the last year between December 30, 2011 and January 12, 2012, when shares rose for nine straight days, increasing 16% (+$4.68) over that span. It saw one of its worst periods between July 22, 2011 and August 2, 2011 when shares fell for eight straight days, dropping 13.2% (-$4.65) over that span.

Wall St. Revenue Expectations: Analysts are projecting a decline of 4.4% in revenue from the year-earlier quarter to $2.84 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.5 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 0.52 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 13.6% to $2.91 billion while assets rose 10.6% to $1.46 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 7.3% in the second quarter of the last fiscal year, 8.5% in the third quarter of the last fiscal year and 1.4%in the fourth quarter of the last fiscal year before dropping in the first quarter.

A Look Back: In the first quarter, profit rose 3% to $104 million (30 cents a share) from $101 million (26 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 8.1% to $2.55 billion from $2.78 billion.

Analyst Ratings: With 12 analysts rating the stock a buy, none rating it a sell and six rating the stock a hold, there are indications of a bullish stance by analysts.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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