On Thursday, Marriott International Inc. (NYSE: MAR) said its third-quarter earnings fell 28% and warned of deteriorating conditions for 2009, and Constellation Brands Inc. (NYSE: STZ) posted a loss of nearly $23 million in its fiscal second quarter due to charges to reduce operations in Australia.
For the quarter ended Sept. 5, Marriott's net income slipped to $94 million, or 26 cents per share. Excluding a $29 million tax planning charge, adjusted income from continuing operations totaled $123 million, or 34 cents per share. Revenue rose 1% to $2.96 billion.
Analysts surveyed by Thomson Reuters had expected earnings of 32 cents per share on revenue of $2.95 billion.
Marriott said its revenue per available room declined in North America, and timeshare sales evaporated due to the tight credit market and cutbacks in business and consumer spending.
The Bethesda, Md.-based hotel company lowered its full-year 2008 earnings guidance to $1.62 to $1.68 per share, from its previous guidance of $1.77 to $1.88 per share. Analysts had forecast 2008 profit of $1.78 per share. For 2009, Marriott said the outlook is uncertain, but it expects the environment to remain challenging. Marriott said it will focus on cash flow by trimming investments and share repurchases.
Marriott shares fell $1.34, or 5.3%, to $23.74 Thursday. The stock price is down 30.5% year to date.
For the quarter ended Aug. 31, Constellation Brands reported a loss of $22.7 million, or 11 cents per share, compared with earnings of $72 million, or 33 cents a share, a year earlier.
Excluding $129 million of charges and write-downs associated mainly with an effort in August to restructure Australian operations, its net income rose 28% to $99 million, or 45 cents a share. Net sales rose 7% to $956.5 million after excise taxes. Analysts surveyed by Thomson Reuters expected earnings of 44 cents a share and revenue of $964.5 million.
The wine and spirits maker maintained its full-year outlook of $1.68 to $1.76 per share profit. Analysts, on average, expect a profit of $1.72.
On Thursday, shares fell $1.90, or 8.8%, to $19.73. The stock is down 16.5% year to date.
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