Marriott beats earnings expectations and raises outlook, but stock pulls back from record high

Marriott International Inc.
MAR,
+1.53%
reported Tuesday second-quarter profit and revenue that beat expectations, with particular strength in its international regions, and raised its full-year outlook. Meanwhile, the hotel operator’s stock slipped 0.8% in premarket trading, after closing Monday at a record high. Net income rose to $726 million, or $2.38 a share, from $678 million, or $2.06 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $2.26 beat the FactSet consensus of $2.18. Revenue grew 13.8% to $6.08 billion, above the FactSet consensus of $5.98 billion. Worldwide revenue per available room increased 13.5%, with international RevPAR surging 39% and U.S. and Canada RevPAR up 6%, aided by growth in group revenue, and both leisure and business transient revenue. For 2023, the company raised its guidance ranges for adjusted EPS to $8.36 to $8.65 from $7.97 to $8.42 and for worldwide RevPAR growth to 12% to 14% from 10% to 13%. The stock has rallied 18.6% over the past three months through Monday while the S&P 500
SPX,
-0.27%
has advanced 10.1%.