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Marriott International adjusted Q4'17 earnings rise YOY

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Marriott International adjusted Q4'17 earnings rise YOY

Marriott International Inc. reported fourth-quarter net income of $201 million, or 54 cents per share, a fall of 17.6% in the aggregate from $244 million, or 62 cents per share, in the comparable 2016 period.

As adjusted for expenses related to its September 2016 acquisition of Starwood Hotels & Resorts Worldwide and other items, fourth-quarter 2017 net income was $415 million, or $1.12 per share, a 24% increase on an aggregate basis from $334 million, or 85 cents per share, in the year-ago quarter.

Adjusted fourth-quarter 2017 results also exclude a gain on the disposition of the company's ownership interest in Avendra and a provisional tax charge resulting from the U.S. Tax Cuts and Jobs Act of 2017.

Total revenues for the quarter came to $5.88 billion, an increase of 7.7% year over year from $5.46 billion.

For the full year, the company posted a 75.9% year-over-year gain in net income. In the aggregate, results totaled $1.37 billion, or $3.61 per share, compared to $780.0 million, or $2.64 per share, in 2016.

For the full year 2017, net income as adjusted was $1.66 billion, or $4.36 per share, up 27% on an aggregate basis from combined results of $1.30 billion, or $3.30 per share, in the full year 2016.

For the full year, total revenues came in at $22.89 billion, a 25.43% rise from $17.07 billion the previous year.

The S&P Capital IQ consensus GAAP EPS estimate for the quarter was 99 cents. For the full year, the S&P Capital IQ consensus estimate for GAAP EPS was $4.04.

In the first quarter, the company plans to adopt Accounting Standards Update 2014-09, which changes the GAAP reporting for revenue and expense recognition for franchise application and re-licensing fees, contract investment costs, the quarterly timing of incentive-fee recognition and centralized programs and services, among other items.

Marriott said it expects EPS in the range of $5.11 to $5.34 for the 2018 full year. The company also expects EPS excluding the impact of a new revenue standard for the 2018 full year between $5.22 and $5.45.

For the 2018 full year, the S&P Capital IQ consensus GAAP EPS estimate is $5.34.

The company repurchased 7.4 million shares of common stock for $925 million in the fourth quarter. For the full year, Marriott repurchased 29.2 million shares for $3.0 billion. Thus far in 2018, the company has repurchased 2.3 million shares for $315 million.