Marriott International Falls After Q3 Results; Cuts 2013 Earnings Guidance (MAR)

Marriott International (NYSE: MAR) released its fiscal second-quarter earnings results on Wednesday after the closing bell.

The company reported earnings per share that were in-line with estimates, and revenue that came in ahead of Wall Street expectations. Marriott also provided guidance for the upcoming third-quarter and lowered its fiscal 2013 earnings outlook.

In late trade, the stock was last down around three percent to $40.25.

Management Commentary

Arne M. Sorenson, president and chief executive officer of Marriott International, said, "We were pleased with our second quarter results and believe they reflect the core strength of our business model. Modest economic growth combined with historically low supply increases in the industry helped us post 5.2 percent systemwide REVPAR growth in North America. Both business and leisure transient demand were strong in the quarter, more than offsetting weak short-term group business. As occupancy rates reach 2007 peak levels for many brands, room rates are moving higher, improving hotel profitability and incentive fees.

Related: Is Herbalife still a buy?

Fiscal Q2 Financial Results

Marriott reported net income of $179 million or $0.57 per share, compared to $143 million or $0.42 per share, in last year's corresponding quarter. This was in-line with analysts' consensus EPS estimates.

Revenue rose 18 percent to $3.3 billion in the quarter from $2.8 billion last year. This came in ahead of Wall Street revenue expectations of $3.21 billion.

Q3 and Fiscal 2013 Guidance

Looking ahead to Q3, Marriott forecast earnings per share between $0.42 and $0.46. This compares to current consensus EPS estimates of $0.49 for the upcoming quarter.

For fiscal 2013, Marriott said that it expects earnings between $1.92 and $2.03 per share compared to its previous guidance of $1.93 to $2.08 per share. Currently, analysts have consensus EPS estimates of $2.04 for the fiscal year.