Marriott earnings down 18 percent, short of expectations

Posted: 6:49 pm Wed, February 15, 2012
By Associated Press

Marriott International Inc. said Wednesday its fourth-quarter net income fell 18 percent, hurt by a one-time charge tied to the spinoff of its timeshare business.

The Bethesda-based company earned $141 million, or 41 cents per share, compared with $173 million, or 46 cents per share, a year earlier. Taking out one-time items in both periods, it earned $159 million, or 46 cents per share, compared with $135 million, or 35 cents per share in the fourth-quarter of 2010.

Revenue inched higher to $3.69 billion from $3.64 billion the year before.

The results fell short of Wall Street’s expectations, and shares fell slightly in after-hours trading. The results were released after the close of regular trading when Marriott’s shares finished at $34.73, down 40 cents, or 1.1 percent. According to FactSet Research, analysts expected a profit of 47 cents per share on revenue of $3.74 billion. They usually exclude one-time items from their estimates.

Revenue per available room — a key measure of health for hotel companies — rose 5.9 percent in the quarter. That metric grew at a faster rate in North America than the rest of the world.

Marriott, which also operates Ritz-Carlton and other lodging brands, expects growth to continue this year as increases in the number of hotel rooms overall slows in North America, allowing for higher prices if demand continues to rise. For the first quarter, the company expects revenue per available room to rise between 5 and 6 percent across North America and worldwide.

“We are bullish about the long-term growth prospects for both Marriott and the global lodging industry,” J.W. Marriott Jr., chairman and chief executive officer of Marriott International, said in a statement. “With a growing middle class and rapid economic growth in many emerging markets, global demand is increasing steadily.”

For 2012, Marriott sees emerging markets driving strong global growth, and forecasts earnings well above current analyst forecasts.

It expects to earn between $1.52 and $1.64 per share for the year. Analysts currently project $1.38 per share, on average.