Leading hospitality company,
Marriott International, Inc.
) is expected to beat the Zacks Consensus Estimates when it
reports fourth quarter and full year 2012 results on February 19,
2013, after the closing bell.
Why a Likely Positive Surprise?
Our proven model shows that Marriott is likely to beat
earnings as it has the appropriate combination of two key
Positive Zacks ESP:
Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
), which represents the difference between the Most Accurate
Estimate and the Zacks Consensus Estimate, is at +3.64%. This is
a meaningful and leading indicator for a likely positive earnings
surprise for shares.
Zacks Rank #3 (Hold):
Marriott currently retains a Zacks Rank #3 (Hold) which increases
the predictive power of its ESP.
The combination of the stock's Zacks Rank #3 (Hold) and +3.64%
Earnings ESP makes us confident of a positive earnings surprise
in the to-be-reported quarter.
Stocks with Zacks Ranks of #1, #2 and #3 have significantly
higher chances of beating the earnings.
What is Driving the Better than Expected
Marriott with its strong portfolio of leading brands offer a
substantial geographic reach worldwide. The company's lodging
business in domestic market is constantly growing. In the third
quarter of 2012, North America's comparable system-wideRevPAR
increased 6.3%, with the average daily rate growing 4.9%.
The company has a substantial development pipeline and is
poised to benefit from the increase in demand for hotels, going
forward. Marriott continues to expand its U.S. and international
market share in 2012. Marriot expects to unveil nearly 28,000
rooms in 2012, including brand acquisitions.
Further, Marriott's cost effective initiatives and share
repurchase activities are highly impressive which will help it
augment its performance, moving ahead.
Other Stocks to Consider
Marriott is not the only stock performing impressively this
earnings season. We also observe that there are other companies,
which are likely to beat earnings.
Intercontinental Hotels Group plc
) has Earnings ESP of +2.78% and a Zacks Rank #1 (Strong
Marriott Vacations Worldwide Corp.
) has Earnings ESP of +4.17% and a Zacks Rank #3 (Hold). The
company is also scheduled to report its earnings results on Feb
AFC Enterprises Inc.
) has Earnings ESP of +6.45% and a Zacks Rank #2 (Buy).
AFC ENTERPRISES (AFCE): Free Stock Analysis
INTERCONTL HTLS (IHG): Free Stock Analysis
MARRIOTT INTL-A (MAR): Free Stock Analysis
MARRIOT VAC WW (VAC): Free Stock Analysis
To read this article on Zacks.com click here.