Marriott (MAR) Q2 Sales Light as Profit Inline; Co. Gives Q3, FY12 Outlooks

July 11, 2012 5:39 PM EDT
Marriott (NYSE: MAR) shares are down 2 percent Wednesday afternoon following inline second-quarter earnings and a miss on the top line.

The Bethesda, Maryland-based hospitality company said quarterly revenue totaled $2.78 billion, down 6.6 percent from sales of $2.97 billion in the same quarter last year. Wall Street was looking for revenue of $2.83 billion.

Net income rose nearly 6 percent from $135 million in the year-ago quarter to $143 million. Earnings per share totaled 42 cents, up from 37 cents reported last year.

President and CEO Arne Sorenson said, "In the second quarter, our business performed well in most markets around the world. In North America, strengthening group business, more travel by our special corporate customers, especially in the technology and consulting industries, and the impact of modest supply growth, drove our occupancy and room rates higher. In Europe, more travelers from the United States, Russia and China helped move REVPAR higher. In the Asia Pacific region, solid REVPAR growth resulted from strong economic growth and maturing new hotels."

Marriott is looking for third-quarter earnings of 39-41 cents per share, which compares to the Street estimate of 37 cents. FY12 earnings are expected to be $1.65-$1.75, which compares to the analyst estimate of $1.65.

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