What Happened?
Shares of global hospitality company Marriott (NASDAQ:MAR) fell 5.1% in the morning session after the company reported disappointing fourth-quarter results: While full-year EPS fell short of expectations, fourth-quarter revenue and EPS slightly exceeded estimates. However, full-year guidance implied adjusted EPS of $9.82 to $10.19, suggesting moderate growth, and RevPAR (sales generated by each available room - a key performance indicator) growth is expected to decelerate to 2%-4%, which is even more worrisome. Overall, this was a weak quarter.
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What The Market Is Telling Us
Marriott’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Marriott is up 4.2% since the beginning of the year, and at $285.99 per share, it is trading close to its 52-week high of $304.45 from February 2025. Investors who bought $1,000 worth of Marriott’s shares 5 years ago would now be looking at an investment worth $1,943.
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