Shares of Marriott International (NASDAQ: MAR ) started the day in the green after the company announced it beat estimates for second-quarter earnings.
The hotel operator saw second-quarter revenue accelerate 69.5% year-over-year to a total of $5.34 billion. Additionally, earnings per share (EPS) jumped to $1.80. Wall Street analysts were expecting the company to report $4.96 billion in revenue and $1.57 EPS, respectively.
Additionally, Marriott managed to add approximately 17,000 rooms globally in the second quarter, with 9,200 rooms in international markets. These investments were accompanied by the firm’s penchant for leisure travel, continuing to be strong in the third quarter.
Strong growth for MAR
Anthony Capuano, Chief Executive Officer, sounded enthusiastic about the revenue pace, pointing to strong demand growth that led to the business firing on all cylinders.
“Marriott’s second quarter results underscore consumers’ love of travel. We reported outstanding results as the momentum in the global housing recovery continued.”
He also added:
“With demand increasing across all customer segments during the quarter, and nearly all countries easing travel restrictions, worldwide RevPAR1 exceeded 2019 levels in June. The second quarter average daily rate was strong, at 7 percent above 2019 levels, and worldwide occupancy reached 68 percent.
MAR chart and analysis
The short-term trend is positive, while the long-term trend is neutral for MAR, which is evolving in the right direction for investors looking to go long the stock. The trading range over the past month was quite wide, between $133.54 and $160.02, with the stock down ‘only’ 1% for the year.
Additionally, MAR is one of the best performers in 2022 as the stock is barely down compared to the shock investors faced during the pandemic.
The strong recovery, strong earnings growth and optimism from management that the momentum will carry into the third quarter are all positive signs that the stock will continue to perform well going forward.
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