Marriott Q3 Earnings Preview: Revenue Growth Expected to Slow

Global hospitality giant Marriott International (NASDAQ: MAR) is scheduled to announce its third-quarter earnings results this Tuesday before market opening. Analysts project the company's revenue will reach $6.43 billion, representing a 2.8% year-over-year increase, though this marks a slowdown from the 5.5% growth recorded in the same quarter last year. Adjusted earnings are anticipated to come in at $2.39 per share. In the previous quarter, Marriott exceeded revenue expectations by 1.2%, reporting $6.74 billion in revenues—a 4.7% annual increase. However, the quarter presented mixed results as the company's EBITDA guidance for the upcoming period fell short of analyst projections. Over the past month, analysts have generally maintained their estimates, indicating expectations that Marriott will perform in line with predictions. The company has struggled with consistency, having missed Wall Street's revenue estimates three times during the last two years. The travel and vacation sector shows varied performance among Marriott's peers. American Airlines reported flat year-over-year revenue while meeting analyst expectations, and Delta Air Lines posted 6.4% revenue growth that exceeded estimates by 3.8%. Stock reactions differed significantly, with American Airlines shares rising 14.3% post-earnings while Delta's stock price remained unchanged. Overall, the travel provider segment has underperformed recently, with share prices declining 4.7% on average over the past month amid economic uncertainty surrounding potential tariffs and corporate tax policies. Marriott's stock has decreased 3.9% during this period and currently trades at $261.28, below the average analyst price target of $284.29.