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VAC

Marriott Vacations (VAC) Misses Q3 Earnings, Revenues

Marriott Vacations Worldwide CorporationVAC operates as a vacation ownership company. The company markets and manages vacation ownership and related products under the Marriott Vacation Club and Grand Residences by Marriott brands, The Ritz-Carlton Destination Club brand; The Ritz-Carlton Residences brand.

Strong marketing initiatives have been helping the company to keep its volume per guest levels strong over the past few quarters at most of its itineraries, thereby resulting in higher contract sales and development margins.

Investors should also note the recent earnings estimate revisions for VAC has remained stable. Marriott Vacations Worldwide has reported 3 positive earnings surprises for the last four quarters, making it a positive average earnings surprise of around 8.23%. In the revenue front, the company has reported negative earnings surprises in 3 of the last 4 quarters.

Currently, VAC has a Zacks Rank #3 (Hold) and have chances of remaining the same following Marriott Vacations Worldwide's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings : VAC missed on earnings. Our consensus earnings estimate called for EPS of 90 cents per share, and the company reported EPS of 82 cents per share instead. Investors should note that these figures take out stock option expenses.

Revenues : VAC reported revenues of $407 million. This missed our consensus estimate of $431 million.

Key Stats to Note : North America volume per guest (VPG) increased 1.4% year over year. Total company contract sales, excluding residential sales, were $159.8 million, $7.5 million lower than the year-ago quarter. Adjusted EBITDA were $51.7 million, down 4.3% year over year.

The company increased its adjusted earnings per share guidance for 2015 and expects it in the range of $3.33 to $3.52, up from the prior guidance of $3.29 to $3.48. Company contract sales growth (excluding residential) is expected to remain in the range of flat to up by 2%, versus the prior range of a growth of 5% to 8%.

Check back later for our full write up on this VAC earnings report later!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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