Why Marriott (MAR) Stock Is Up In After-Market Trading Today

NEW YORK (TheStreet) -- Marriott International (MAR) shares are up 1.7% to $57.59 in after-market trading on Tuesday following the release of the company's first quarter earnings results.

The company reported a first quarter diluted EPS of 57 cents, beating analysts estimates by 6 cents.

Quarterly revenues totaled $3.3 billion for the company, in line with analysts estimates.

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TheStreet Ratings team rates MARRIOTT INTL INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate MARRIOTT INTL INC (MAR) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to its closing price of one year ago, MAR's share price has jumped by 39.10%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MAR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Net operating cash flow has significantly increased by 85.08% to $335.00 million when compared to the same quarter last year. In addition, MARRIOTT INTL INC has also vastly surpassed the industry average cash flow growth rate of -78.76%.
  • MARRIOTT INTL INC's earnings per share declined by 12.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MARRIOTT INTL INC increased its bottom line by earning $2.01 versus $1.72 in the prior year. This year, the market expects an improvement in earnings ($2.40 versus $2.01).
  • MAR, with its decline in revenue, slightly underperformed the industry average of 4.8%. Since the same quarter one year prior, revenues fell by 14.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The gross profit margin for MARRIOTT INTL INC is currently extremely low, coming in at 7.83%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.69% trails that of the industry average.
  • You can view the full analysis from the report here: MAR Ratings Report
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