Marriott revenue tops estimates and says it expects pickup in October to continue

Marriott International Inc. MAR, -1.09% beat revenue estimates for the third quarter on Wednesday, and said a pickup in business in October as the delta variant of the coronavirus began to wane is expected to continue. The company posted net income of $220 million, or 67 cents a share, for the quarter, up from $100 million, or 31 cents a share, in the year-earlier period. Adjusted per-share earnings came to 99 cents, matching the FactSet consensus. Revenue climbed to $3.946 billion from $2.254 billion, ahead of the $3.713 billion FactSet consensus. CEO Anthony Capuano said worldwide revenue per average room (RevPAR) was down 26% compared to the third quarter of 2019, before the outbreak of the pandemic, a better result than the 44% decline seen in the second quarter. Occupancy topped 58% thanks to strength in leisure demand. "Globally, leisure travel generally remained very strong throughout the quarter, while the Delta variant had the most impact on business transient demand. With the worst of the Delta variant wave now hopefully behind us, business transient demand picked up again in October, a trend we expect to continue," the executive said in a statement. Marriott is not offering guidance because of the continued uncertainty relating to the pandemic. Shares were slightly lower premarket, but have gained 21% in the year to date, while the S&P 500 SPX, +0.37% has gained 23%.