Marriott(MAR) 2023 Earnings Summary
Bullish Points:
1. Net income and basic earnings per share increased for both three and six months ended June 30, 2023, compared to the same periods in 2022.
2. Worldwide RevPAR increased in both Q2 and H1 2023 compared to the same periods in 2022, driven by ADR growth and occupancy improvement.
3. RevPAR improved in both the U.S. & Canada and internationally in Q2 and H1 2023 compared to the same periods in 2022.
4. The company had more properties and rooms at the end of Q2 2023 compared to year-end 2022 and expects full-year 2023 net rooms growth of approximately 6.4 to 6.7 percent.
5. Net fee revenues and owned, leased, and other revenue increased in Q2 2023 compared to Q2 2022.
6. Segment results improved significantly in 2023 Q2 and H1 compared to 2022 Q2 and H1 due to the continued recovery in lodging demand from the impacts of COVID-19.
Bearish Points:
1. Stock-based compensation expense for RSUs and PSUs remained relatively stable in Q2 2023 compared to Q2 2022, but decreased in H1 2023 compared to H1 2022.
2. Effective tax rate and cash paid for income taxes increased in Q2 and H1 2023 compared to the same periods in 2022.
3. Long-term debt increased at June 30, 2023, compared to December 31, 2022.
4. Interest expense increased in 2023 Q2 and H1 primarily due to higher debt balances and higher average borrowings and interest rates related to commercial paper and Credit Facility program.
5. Equity in earnings decreased in 2023 Q2 and H1 primarily due to gains recorded in the prior year on the sale of properties held by equity method investees.
The final result shows that Marriott(MAR) has experienced growth in net income, earnings per share, and RevPAR, indicating a positive trend in the company's performance. However, there are also concerns related to increased tax rates, long-term debt, and interest expenses. For more information, you can read the original text of Marriott(MAR)'s financial report: https://www.sec.gov/Archives/edgar/data/1048286/000162828023026380/mar-20230630.htm
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