Marriott International Inc (MAR) has reported a 66.67 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $365 million, or $0.94 a share in the quarter, compared with $219 million, or $0.85 a share for the same period last year. Revenue during the quarter surged 47.43 percent to $5,561 million from $3,772 million in the previous year period. Gross margin for the quarter contracted 6 basis points over the previous year period to 14.60 percent. Total expenses were 90.34 percent of quarterly revenues, up from 90.27 percent for the same period last year. That has resulted in a contraction of 7 basis points in operating margin to 9.66 percent.
Operating income for the quarter was $537 million, compared with $367 million in the previous year period.
Arne M. Sorenson, president and chief executive officer of Marriott International, said, “We were pleased by our performance in the quarter across the board. RevPAR exceeded our expectations in North America and Europe due to stronger group attendance and higher-rated business transient demand. Demand in Greater China and elsewhere in the Asia Pacific region was also better than expected. With just over 3 percent RevPAR growth worldwide, our teams did an excellent job driving margin improvement of 100 basis points at company-operated hotels. Given the stronger than expected RevPAR performance in North America in the first quarter and improving demand trends in the Europe and Asia Pacific regions, we have increased our full year 2017 RevPAR expectations.
For the second-quarter, Marriott International forecasts revenue to be in the range of $820 million to $835 million. Marriott International forecasts revenue to be in the range of $3,225 million to $3,295 million for fiscal year 2017. Marriott International projects net income to be in the range of $379 million to $393 million for the second-quarter. For financial year 2017, Marriott International projects net income to be in the range of $1,504 million to $1,568 million. The company forecasts operating income to be in the range of $620 million to $640 million for the second-quarter. For financial year 2017, the company forecasts operating income to be in the range of $2,405 million to $2,495 million. The company expects diluted earnings per share to be in the range of $0.99 to $1.03 for the second-quarter. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $3.92 to $4.09.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
