Jefferies Cuts Price Target & Estimates on Marriott International (MAR), Disappointing Q3 Guidance
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Price: $356.72 +1.19%
Rating Summary:
19 Buy, 18 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
19 Buy, 18 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Jefferies is maintaining its Buy rating on shares of Marriott International (NYSE: MAR), but is cutting its price target by $1 to $45 following its Q2 earnings.
The company reported Q2 EPS of $0.37 the firms estimate of $0.36 and the
consensus of $0.37. The firm notes that the upside was largely driven by share repurchases.
Over the quarter MAR repurchased a total of 10.6 million shares for $375 million, resulting in an average price of $35.38/share.
Although Q2 was solid, the company released disappointing Q3 guidance. MAR's guidance calls for EPS of $0.25-$0.29. The company also lowered its 2011 EBITDA guidance from $1,155-$1,215 million to $1,135-$1,180 million.
As a result of the company's new guidance, Jefferies cut its 2011 EBITDA estimate from $1,183 million to $1,156 million and its 2012 estimate from $1,446 million to $1,409 million. EPS estimates for 2011 and 2012 were cut from $1.42 and $1.93 to $1.40 and $1.88.
An analyst for Jefferies comments, "We believe the guidance reduction suggests difficulty forecasting in a volatile macro environment could result in the shares being range-bound for another quarter or two. However, we believe these issues are mostly company specific given MAR's portfolio composition. For the longer term we believe investors could be overlooking the valuation perspective on the shares in view of the timeshare spin-off and the expected lodging recovery."
For more ratings news on Marriott International click here and for the rating history of Marriott International click here.
Shares of Marriott International closed at $34.69 yesterday.
The company reported Q2 EPS of $0.37 the firms estimate of $0.36 and the
consensus of $0.37. The firm notes that the upside was largely driven by share repurchases.
Over the quarter MAR repurchased a total of 10.6 million shares for $375 million, resulting in an average price of $35.38/share.
Although Q2 was solid, the company released disappointing Q3 guidance. MAR's guidance calls for EPS of $0.25-$0.29. The company also lowered its 2011 EBITDA guidance from $1,155-$1,215 million to $1,135-$1,180 million.
As a result of the company's new guidance, Jefferies cut its 2011 EBITDA estimate from $1,183 million to $1,156 million and its 2012 estimate from $1,446 million to $1,409 million. EPS estimates for 2011 and 2012 were cut from $1.42 and $1.93 to $1.40 and $1.88.
An analyst for Jefferies comments, "We believe the guidance reduction suggests difficulty forecasting in a volatile macro environment could result in the shares being range-bound for another quarter or two. However, we believe these issues are mostly company specific given MAR's portfolio composition. For the longer term we believe investors could be overlooking the valuation perspective on the shares in view of the timeshare spin-off and the expected lodging recovery."
For more ratings news on Marriott International click here and for the rating history of Marriott International click here.
Shares of Marriott International closed at $34.69 yesterday.
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