This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Marriott Earnings: Behind the Numbers

(Marriott earnings article updated with commentary.)

BETHESDA, Md. ( TheStreet) -- Marriott International (MAR - Get Report) topped fourth-quarter profit expectations with a 21.9% jump in adjusted quarterly earnings.

Hotel operator Marriott International posted adjusted profits per share of 39 cents, up from 32 cents in the year-earlier period. Analysts' consensus had been for Marriott to earn 36 cents per share.

Marriott shares jumped 2.8% in morning trading Tuesday amid heavy trading. Around 2 million shares were already in play just an hour into the day's trading session compared with their average daily volume of 2.6 million.

Investor enthusiasm reflected the earnings beat as well as word from Marriott that it would split itself into two separate, publicly traded companies.

"Marriott International expects to spin off its timeshare operations and development business as a new independent company through a special tax-free dividend to Marriott International shareholders in late 2011," the company said.

After the special dividend, the Marriott family is expected to hold approximately 21% of the outstanding common stock of each company.

Hudson Securities analysts Robert LaFleur said that "at first blush we like the concept" of Marriott spinning off its timeshare business, "but we will need to see more details."

"The Street must really like the spinout, because the quarter was OK, but not great. Conceptually, we like the spinout idea and think it sets in motion the possibility of similar moves by other operators like Starwood Hotels & Resorts Worldwide (HOT - Get Report) and Wyndham Worldwide (WYN - Get Report) who have big timeshare operations," LaFleur wrote.
1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
HOT $82.00 1.12%
LVS $54.18 3.06%
MAR $74.99 0.81%
MGM $18.55 1.64%
WYNN $105.00 6.40%

Markets

DOW 17,757.91 +138.40 0.79%
S&P 500 2,077.42 +14.31 0.69%
NASDAQ 5,013.1230 +26.2560 0.53%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs