Marriott International (MAR) shares fell 2.3% to $69.50 in late trading after the hotel company reported mixed third-quarter results after the close Monday, beating Wall Street earnings expectations but falling short on revenue predictions.
Marriott reported third-quarter adjusted diluted earnings of 91 cents per share on revenue of $3.77 billion, compared year-over-year to diluted earnings of 78 cents per share on $3.58 billion in revenue. Analysts surveyed at FactSet forecast Marriott to report third-quarter earnings of 89 cents per share on $4 million in revenue.
In its earnings release, Marriott President and CEO Arne Sorenson said his company closed its $13 billion purchase of hotel and leisure company Starwood Hotels & Resorts Worldwide on Sept. 23. Marriott's earnings report shows the company spent $228 million on costs related to the acquisition in the third quarter.
Marriott said it spent $161 million on general, administrative and other expenses in the third quarter, higher than the $149 million it spent on general, administrative and other expenses in the 2015 third quarter. Debts totaled $8.8 million with cash balances of $1.1 million compared to its debts of $4.1 million and cash balances of $96 million posted at the end of 2015.
For the 2016 fourth quarter, Marriott said it expects earnings in the range of 80 cents to 85 cents a share. Wall Street is expecting earnings of 87 cents per share for the 2015 fourth quarter.