- Q3 dividend up 33% as hotels chain recovers
- Extra 25 million shares authorised to be repurchased
- Stock lost 3.6% in 2022 versus 17.5% of S&P 500
US-listed hotels chain Marriott International (MAR:NASDAQ) has hiked its quarterly dividend and its share repurchase authority. Shares in the business rallied 14% on 10 November, a far bigger jump than the S&P 500’s 5.5% surge, and pre-market the stock is seen nudging modestly higher still to $158.56.
Marriott raised its dividend for the three months to 30 September 33.3% from $0.30 to $0.40 per share. That puts the company on track to pay $1.40 for 2022, compared to the $1.92 annual run rate before the payout was axed during the pandemic.
The company’s board has also signed-off on new 25 million share buyback authorisation, allowing the company to repurchase up to 30.8 million of its own stock. That’s almost 10% of Marriott’s 326 million share count trading on the market.
EARNINGS AND REVENUES BEAT
Marriott is the world’s largest hotels operator by room numbers, with 1,423,642 rooms across 7,642 hotels in 131 countries, including the Marriott Renaissance St Pancreas, the Gothic Revivalist structure next to St Pancreas railway station in London.
It’s share price has been incredibly robust during 2022, down just 3.6% since 31 December 2021 compared to a 17.5% decline for the S&P 500.
St Pancreas Renaissance Hotel, London
On 3 November, Marriott reported third-quarter earnings and revenues of $1.69 per share on $5.31 billion revenues. That was better than consensus estimates pitched at $1.67 and $5.27 billion respectively, according to Investing.com data.
Analysts are forecasting full year 2022 EPS of $6.50 on $20.3 billion revenues, according to data from Koyfin. Consensus estimates for 2023 are pitched at $22.18 billion revenues and $7.64 EPS, Koyfin shows, as business and holiday travel continues to recover.
10 of the 22 analysts that cover Marriott are currently telling clients to buy the shares, the rest are advising hold. Share price targets range from $152 to $190 on a 12-month view, with the average pitched at $170.
