Marriott International shares fell 4% in pre-market trading despite beating profit forecasts, as a revenue miss and decelerating guidance weighed on sentiment. Adjusted earnings of $3.19 per share for the second quarter topped analyst estimates of $3.05 to $3.08, but revenue of $7.07 billion fell short of the $7.17 billion to $7.26 billion consensus. The company guided third-quarter adjusted earnings to $2.74 to $2.82 per share, implying profit growth of 7% to 9%, a sharp slowdown from the 13% delivered in the second quarter. Full-year adjusted earnings guidance of $11.64 to $11.81 barely exceeds the $11.64 consensus, and net room growth is trending toward the low end of the 4.5% to 5% range. International revenue per available room declined 0.5%, dragged down by a 43% collapse in the Middle East, while the quarter also included a $68 million impairment on a U.S. hotel sale and a $27 million litigation accrual.
Marriott International IncRevenue miss and decelerating guidance overshadowed earnings beat, causing shares to fall.