NEW YORK (TheStreet) -- Marriott International (MAR - Get Report) shares are spiking by 2.5% to $70.40 in after-hours trading on Wednesday, immediately after the hotel operator posted better-than-expected 2016 first quarter results.
Earnings for the period ended came in at 87 cents a share, topping Wall Street's estimates of 84 cents a share. Revenue of $3.77 beat forecasts of $3.68 billion.
For the same quarter a year ago, the company earned 73 cents a share on revenue of $3.51 billion.
During the recent quarter, worldwide systemwide comparable RevPAR rose 2.6% in constant dollars and the company's development pipeline increased to more than 275,000 rooms, compared to 240,000 rooms in the year-ago quarter.
"Our planned acquisition of Starwood Hotels & Resorts Worldwide (HOT) is on track," CEO Arne M. Sorenson added. "Shareholders of both companies overwhelmingly approved proposals relating to the merger and we continue to look forward to a mid-2016 closing."
Earlier this month, the shareholders of two companies voted in favor of the deal that will create the world's largest hotel company. Marriott is paying around $12.4 billion to acquire Starwood.
Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of B-.
The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, good cash flow from operations and increase in net income. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
You can view the full analysis from the report here: MAR