On Wednesday 18 February Marriott International is due to post its fourth-quarter figures. The adjusted earnings per share are called unchanged at $0.65; sales are called fractionally higher, up to $3.584 billion from $3.46 billion, with the pre-tax profit falling from $290 million to $278.643 million.
Year-on-year, however, a different picture is painted, with earnings per share jumping from $0.49 to $0.65, sales up 7.9% and the pre-tax profit expected to rise over 32.5% to $278.643.
Institutional support for the company still remains resilient, with thirteen firms rating it a ‘buy’, eleven a ‘hold’ and only three as a ‘sell’. The average twelve-month price target for Marriott is $79.84, still offering an 8.18% premium to the current $73.80 price.
The Marriott International company is a complex beast, with 18 different brands under its umbrella. Started by John Marriott in 1927, the family still holds over 27% of the shares in issue and has expanded the company both through organic growth and the use of franchising. The 4000th Marriott Hotel was opened in Washington last year.
The last couple of years have seen the share almost double, as the recovery in the US has become increasingly more convincing. The confidence this has added to the tourism industry has helped drive figures higher. Considering the global exposure to the US dollar’s strength, the company has done particularly well. The 100- and 200-day moving averages have proved to be supportive, and only a break below the 200-day moving average of $69.17 would cause a rethink.