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Marriott Vacations' (VAC) Q4 Earnings Top Estimates, Rise Y/Y
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Marriott Vacations Worldwide Corporation (VAC - Free Report) reported mixed third-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues missing the same. Nevertheless, the metrics increased on a year-over-year basis. The company’s operations benefitted from strong occupancies and solid contract sales.
Stephen P. Weisz, CEO, stated, "We ended the year on a strong note, growing contract sales by 7% sequentially in the fourth quarter to $406 million, exceeding 2019 levels for the first time since the pandemic started."
Despite softness in a few markets due to the Omicron variant, management stated that it expects 2022 full-year contract sales to be 13% higher from 2019 levels and 2022 Adjusted EBITDA to be 17% above 2019 levels both at the midpoint of the guidance.
Earnings & Revenue Discussion
During fourth-quarter 2021, the company reported adjusted earnings of $2.38 per share, surpassing the Zacks Consensus Estimate of $2.09 by 13.9%. In the year-ago quarter, the company had reported an adjusted loss of 5 cents per share.
Marriot Vacations Worldwide Corporation Price, Consensus and EPS Surprise
Quarterly revenues of $1,100 million missed the consensus mark of $1,115 million by 1.4%. However, the top line increased 47.3% on a year-over-year basis.
Segmental Performances
Vacation Ownership: During the fourth quarter, revenues in the segment totaled $1,021 million, up 58% from $646 million reported in the prior-year quarter. Revenues, excluding cost reimbursements, increased 102% year over year. The figure rose 8% from third-quarter 2021 levels. In the fourth quarter, revenues from the sale of vacation ownership products increased 10% and rental revenues rose 13% quarter over quarter.
The segment’s adjusted EBITDA came in at $234 million compared with $73 million reported in the prior-year quarter.
Exchange & Third-Party Management: The segment’s revenues totaled $71 million in the fourth quarter, down 2.7% from $73 million reported in the prior-year quarter. Revenues, excluding cost reimbursements, increased 8% year over year.
During the fourth quarter, interval international active members dropped 1% quarter over quarter to 1.3 million, while average revenue per member remained largely unchanged on a sequential basis. The segment’s adjusted EBITDA came in at $31 million compared with $28 million reported in the prior-year quarter.
Corporate and Other Results
During the fourth quarter, general and administrative costs increased $19 million year over year owing to an increase in salary and wages costs, higher bonus expenses and a downside in credits related to incentives under the CARES Act.
Expenses & EBITDA
Total expenses in the quarter increased 28.1% year over year to $935 million from $730 million reported in the year-ago quarter.
The company’s adjusted EBITDA in the fourth quarter amounted to $219 million compared with $72 million reported in the year-ago quarter.
Balance Sheet
As of Dec 31, 2021, cash and cash equivalents were $342 million compared with $448 million as of Sep 30, 2021.
The company had $4.5 billion in debt outstanding (net of unamortized debt issuance costs) at the end of the fourth quarter compared with $4.4 billion reported in the previous quarter. This includes $2.6 billion of corporate debt and $1.9 billion of non-recourse debt related to its securitized notes receivable.
2021 Highlights
Total revenues in 2021 came in at $3,890 million compared with $2,886 million reported in 2020.
Adjusted EBITDA in 2021 came in at $657 million compared with $235 million reported in 2020.
In 2021, adjusted earnings per share (EPS) came in at $4.40 against $(0.45) reported in the previous year.
2022 Outlook
For 2022, the company anticipates contract sales in the range of $1,675-$1,775 million. Adjusted free cash flow is projected in the range of $560-$640 million. Adjusted EBITDA is expected between $860 million and $920 million. Adjusted fully diluted EPS for 2022 is expected between $8.72 to $9.65.
Marriott flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 86.6%, on average. Shares of Marriott have increased 12% in the past year.
The Zacks Consensus Estimate for MAR’s 2022 sales and EPS suggests growth of 40.3% and 73%, respectively, from the year-ago period’s levels.
Crocs flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 36%, on average. Shares of Crocs have increased 5.6% in the past year.
The Zacks Consensus Estimate for CROX’s 2022 sales and EPS indicates a rise of 48.6% and 22.1%, respectively, from the year-ago period’s levels.
Cedar Fair flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 16.3%, on average. Shares of Cedar Fair have gained 15.7% in the past year.
The Zacks Consensus Estimate for FUN’s 2022 sales and EPS suggests growth of 32.6% and 612.7%, respectively, from the year-ago period’s levels.
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Marriott Vacations' (VAC) Q4 Earnings Top Estimates, Rise Y/Y
Marriott Vacations Worldwide Corporation (VAC - Free Report) reported mixed third-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues missing the same. Nevertheless, the metrics increased on a year-over-year basis. The company’s operations benefitted from strong occupancies and solid contract sales.
Stephen P. Weisz, CEO, stated, "We ended the year on a strong note, growing contract sales by 7% sequentially in the fourth quarter to $406 million, exceeding 2019 levels for the first time since the pandemic started."
Despite softness in a few markets due to the Omicron variant, management stated that it expects 2022 full-year contract sales to be 13% higher from 2019 levels and 2022 Adjusted EBITDA to be 17% above 2019 levels both at the midpoint of the guidance.
Earnings & Revenue Discussion
During fourth-quarter 2021, the company reported adjusted earnings of $2.38 per share, surpassing the Zacks Consensus Estimate of $2.09 by 13.9%. In the year-ago quarter, the company had reported an adjusted loss of 5 cents per share.
Marriot Vacations Worldwide Corporation Price, Consensus and EPS Surprise
Marriot Vacations Worldwide Corporation price-consensus-eps-surprise-chart | Marriot Vacations Worldwide Corporation Quote
Quarterly revenues of $1,100 million missed the consensus mark of $1,115 million by 1.4%. However, the top line increased 47.3% on a year-over-year basis.
Segmental Performances
Vacation Ownership: During the fourth quarter, revenues in the segment totaled $1,021 million, up 58% from $646 million reported in the prior-year quarter. Revenues, excluding cost reimbursements, increased 102% year over year. The figure rose 8% from third-quarter 2021 levels. In the fourth quarter, revenues from the sale of vacation ownership products increased 10% and rental revenues rose 13% quarter over quarter.
The segment’s adjusted EBITDA came in at $234 million compared with $73 million reported in the prior-year quarter.
Exchange & Third-Party Management: The segment’s revenues totaled $71 million in the fourth quarter, down 2.7% from $73 million reported in the prior-year quarter. Revenues, excluding cost reimbursements, increased 8% year over year.
During the fourth quarter, interval international active members dropped 1% quarter over quarter to 1.3 million, while average revenue per member remained largely unchanged on a sequential basis. The segment’s adjusted EBITDA came in at $31 million compared with $28 million reported in the prior-year quarter.
Corporate and Other Results
During the fourth quarter, general and administrative costs increased $19 million year over year owing to an increase in salary and wages costs, higher bonus expenses and a downside in credits related to incentives under the CARES Act.
Expenses & EBITDA
Total expenses in the quarter increased 28.1% year over year to $935 million from $730 million reported in the year-ago quarter.
The company’s adjusted EBITDA in the fourth quarter amounted to $219 million compared with $72 million reported in the year-ago quarter.
Balance Sheet
As of Dec 31, 2021, cash and cash equivalents were $342 million compared with $448 million as of Sep 30, 2021.
The company had $4.5 billion in debt outstanding (net of unamortized debt issuance costs) at the end of the fourth quarter compared with $4.4 billion reported in the previous quarter. This includes $2.6 billion of corporate debt and $1.9 billion of non-recourse debt related to its securitized notes receivable.
2021 Highlights
Total revenues in 2021 came in at $3,890 million compared with $2,886 million reported in 2020.
Adjusted EBITDA in 2021 came in at $657 million compared with $235 million reported in 2020.
In 2021, adjusted earnings per share (EPS) came in at $4.40 against $(0.45) reported in the previous year.
2022 Outlook
For 2022, the company anticipates contract sales in the range of $1,675-$1,775 million. Adjusted free cash flow is projected in the range of $560-$640 million. Adjusted EBITDA is expected between $860 million and $920 million. Adjusted fully diluted EPS for 2022 is expected between $8.72 to $9.65.
Zacks Rank & Key Picks
Marriott Vacations currently 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 from the Zacks Consumer Discretionary sector are Marriott International, Inc. (MAR - Free Report) , Crocs, Inc. (CROX - Free Report) , and Cedar Fair, L.P. (FUN - Free Report) .
Marriott flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 86.6%, on average. Shares of Marriott have increased 12% in the past year.
The Zacks Consensus Estimate for MAR’s 2022 sales and EPS suggests growth of 40.3% and 73%, respectively, from the year-ago period’s levels.
Crocs flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 36%, on average. Shares of Crocs have increased 5.6% in the past year.
The Zacks Consensus Estimate for CROX’s 2022 sales and EPS indicates a rise of 48.6% and 22.1%, respectively, from the year-ago period’s levels.
Cedar Fair flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 16.3%, on average. Shares of Cedar Fair have gained 15.7% in the past year.
The Zacks Consensus Estimate for FUN’s 2022 sales and EPS suggests growth of 32.6% and 612.7%, respectively, from the year-ago period’s levels.