Marriott Vacations Worldwide Corporation (VAC - Free Report) reported fourth-quarter 2022 results, with earnings and revenues missing the Zacks Consensus Estimate after beating in the preceding three quarters. Following the results, the company’s shares declined 3.6% in the after-hour trading session on Feb 22.
The company’s president & chief executive officer, John Geller, stated, “Looking forward, we expect occupancies in North America and Europe to remain strong this year and for Asia-Pacific to continue to improve. We also expect to grow contract sales this year by 5% to 9% compared to the prior year and for Adjusted Free Cash Flow to be between $600 million and $670 million, illustrating the continued demand for leisure travel and the strength of our business model.”
Earnings & Revenue Discussion
During the fourth quarter of 2022, the company reported adjusted earnings per share (EPS) of $2.74, missing the Zacks Consensus Estimate of $2.85 by 3.9%. In the year-ago quarter, the company had reported adjusted earnings of $2.38 per share.
Quarterly revenues of $1,188 million lagged the consensus mark of $1,228 million. However, the top line increased 8% on a year-over-year basis.
Segmental Performances
Vacation Ownership: During the fourth quarter, revenues in the segment totaled $1,113 million, up 9% from $1,021 million reported in the prior-year quarter.
The segment’s adjusted EBITDA came in at $254 million, up 8% year over year.
Exchange & Third-Party Management: The segment’s revenues totaled $62 million in the fourth quarter, down 12.7% from $71 million reported in the prior-year quarter. Revenues, excluding cost reimbursements, decreased 7% year over year.
During the fourth quarter, interval international active members increased 21% year over year to 1.6 million, while average revenues per member declined 17% on a year-over-year basis. The segment’s adjusted EBITDA came in at $31 million, flat year over year.
Corporate and Other Results
During the fourth quarter, general and administrative costs came in at $53 million, compared with $46 million in the prior-year quarter.
Expenses & EBITDA
Total expenses in the quarter increased 0.5% year over year to $992 million from $987 million reported in the year-ago quarter.
The company’s adjusted EBITDA in the fourth quarter amounted to $239 million compared with $219 million reported in the year-ago quarter.
Balance Sheet
As of Dec 31, 2022, the company’s cash and cash equivalents were $524 million compared with $342 million as of Dec 31, 2021.
At the end of the fourth quarter, the company had $2.8 billion of corporate debt and $1.9 billion of non-recourse debt related to its securitized notes receivable.
2023 Outlook
For 2023, the company anticipates contract sales in the range of $1,930-$2,000 million. Adjusted free cash flow is projected in the range of $600-$670 million. Adjusted EBITDA is expected to be between $950 million and $1,000 million. Adjusted fully diluted EPS for 2023 is expected to be between $10.75 and $11.54.
Zacks Rank & Key Picks
Marriott Vacations carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Consumer Discretionary sector are OneSpaWorld Holdings Limited. (OSW - Free Report) , Las Vegas Sands Corp. (LVS - Free Report) and Playa Hotels & Resorts N.V. (PLYA - Free Report) .
OneSpaWorld currently sports a Zacks Rank #1. OSW has a trailing four-quarter earnings surprise of 84.2%, on average. Shares of the company have increased 3.3% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates a rise of 24.2% and 91%, respectively, from the year-ago period’s levels.
Las Vegas Sands sports a Zacks Rank #1. LVS has a long-term earnings growth rate of 4.9%. The stock has increased 31.6% in the past year.
The Zacks Consensus Estimate for LVS’ 2023 sales and EPS indicates a rise of 100.8% and 217.5%, respectively, from the year-ago period’s estimated levels.
Playa Hotels carries a Zacks Rank #2 (Buy). PLYA has a trailing four-quarter earnings surprise of 19.4%, on average. Shares of the company have declined 3.4% in the past year.
The Zacks Consensus Estimate for PLYA’s 2023 sales and EPS indicates a rise of 7.9% and 26.3%, respectively, from the year-ago levels.
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Marriott Vacations Worldwide Corporation (VAC - Free Report) reported fourth-quarter 2022 results, with earnings and revenues missing the Zacks Consensus Estimate after beating in the preceding three quarters. Following the results, the company’s shares declined 3.6% in the after-hour trading session on Feb 22.
The company’s president & chief executive officer, John Geller, stated, “Looking forward, we expect occupancies in North America and Europe to remain strong this year and for Asia-Pacific to continue to improve. We also expect to grow contract sales this year by 5% to 9% compared to the prior year and for Adjusted Free Cash Flow to be between $600 million and $670 million, illustrating the continued demand for leisure travel and the strength of our business model.”
Earnings & Revenue Discussion
During the fourth quarter of 2022, the company reported adjusted earnings per share (EPS) of $2.74, missing the Zacks Consensus Estimate of $2.85 by 3.9%. In the year-ago quarter, the company had reported adjusted earnings of $2.38 per share.
Quarterly revenues of $1,188 million lagged the consensus mark of $1,228 million. However, the top line increased 8% on a year-over-year basis.
Segmental Performances
Vacation Ownership: During the fourth quarter, revenues in the segment totaled $1,113 million, up 9% from $1,021 million reported in the prior-year quarter.
The segment’s adjusted EBITDA came in at $254 million, up 8% year over year.
Exchange & Third-Party Management: The segment’s revenues totaled $62 million in the fourth quarter, down 12.7% from $71 million reported in the prior-year quarter. Revenues, excluding cost reimbursements, decreased 7% year over year.
During the fourth quarter, interval international active members increased 21% year over year to 1.6 million, while average revenues per member declined 17% on a year-over-year basis. The segment’s adjusted EBITDA came in at $31 million, flat year over year.
Corporate and Other Results
During the fourth quarter, general and administrative costs came in at $53 million, compared with $46 million in the prior-year quarter.
Expenses & EBITDA
Total expenses in the quarter increased 0.5% year over year to $992 million from $987 million reported in the year-ago quarter.
The company’s adjusted EBITDA in the fourth quarter amounted to $239 million compared with $219 million reported in the year-ago quarter.
Balance Sheet
As of Dec 31, 2022, the company’s cash and cash equivalents were $524 million compared with $342 million as of Dec 31, 2021.
At the end of the fourth quarter, the company had $2.8 billion of corporate debt and $1.9 billion of non-recourse debt related to its securitized notes receivable.
2023 Outlook
For 2023, the company anticipates contract sales in the range of $1,930-$2,000 million. Adjusted free cash flow is projected in the range of $600-$670 million. Adjusted EBITDA is expected to be between $950 million and $1,000 million. Adjusted fully diluted EPS for 2023 is expected to be between $10.75 and $11.54.
Zacks Rank & Key Picks
Marriott Vacations carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Consumer Discretionary sector are OneSpaWorld Holdings Limited. (OSW - Free Report) , Las Vegas Sands Corp. (LVS - Free Report) and Playa Hotels & Resorts N.V. (PLYA - Free Report) .
OneSpaWorld currently sports a Zacks Rank #1. OSW has a trailing four-quarter earnings surprise of 84.2%, on average. Shares of the company have increased 3.3% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates a rise of 24.2% and 91%, respectively, from the year-ago period’s levels.
Las Vegas Sands sports a Zacks Rank #1. LVS has a long-term earnings growth rate of 4.9%. The stock has increased 31.6% in the past year.
The Zacks Consensus Estimate for LVS’ 2023 sales and EPS indicates a rise of 100.8% and 217.5%, respectively, from the year-ago period’s estimated levels.
Playa Hotels carries a Zacks Rank #2 (Buy). PLYA has a trailing four-quarter earnings surprise of 19.4%, on average. Shares of the company have declined 3.4% in the past year.
The Zacks Consensus Estimate for PLYA’s 2023 sales and EPS indicates a rise of 7.9% and 26.3%, respectively, from the year-ago levels.
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Zacks Investment Research has released a Special Report to help you pursue massive profits from the world’s first and largest decentralized form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%.
Zacks predicts another significant surge. Click below for Bitcoin: A Tumultuous Yet Resilient History.
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