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Marriott Vacations' (VAC) Q3 Earnings Top Estimates, Rise Y/Y
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Marriott Vacations Worldwide Corporation (VAC - Free Report) reported impressive third-quarter 2022 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The metrics increased on a year-over-year basis.
The company’s CEO, Stephen P. Weisz, stated, "Despite the challenging macroeconomic backdrop, we had a very strong third quarter, growing contract sales by 27% compared to the prior year driven by strong tour growth. With continued growth in our business, we've returned more than $600 million in cash to shareholders this year through a combination of share repurchases and dividends."
Earnings & Revenues Discussion
During third-quarter 2022, the company reported adjusted earnings per share (EPS) of $3.02, surpassing the Zacks Consensus Estimate of $2.63 by 14.8%. In the year-ago quarter, the company reported an adjusted EPS of $1.60.
Marriot Vacations Worldwide Corporation Price, Consensus and EPS Surprise
Quarterly revenues of $1,252 million beat the consensus mark of $1,199 million. The top line increased 19% on a year-over-year basis.
Segmental Performances
Vacation Ownership: During the third quarter, revenues in the segment (excluding the impact of Alignment) totaled $1,182 million compared with $974 million reported in the prior-year quarter.
The segment’s adjusted EBITDA (including the impact of Alignment) came in at $255 million, compared with $215 million reported in the prior year quarter.
Exchange & Third-Party Management: The segment’s revenues totaled $71 million in the third quarter compared with $77 million in the prior-year quarter. Revenues, excluding cost reimbursements, fell 3% year over year.
During the third quarter, interval international active members increased 21% year over year to 1.6 million, while average revenues per member declined 9% on a year-over-year basis. The segment’s adjusted EBITDA (including the impact of Alignment) came in at $39 million compared with the $35 million reported in the prior-year quarter.
Corporate and Other Results
During the third quarter, general and administrative costs increased by $8 million year over year, owing to higher compensation and transformational initiative expenses (including procurement and artificial intelligence capabilities).
Expenses & EBITDA
During the quarter, total expenses (including the impact of alignment adjustments) came in at $1,029 million compared with $896 million reported in the year-ago quarter.
The company’s adjusted EBITDA (including the impact of alignment adjustments) in the third quarter amounted to $240 million compared with $205 million reported in the year-ago quarter.
Balance Sheet
As of Sep 30, 2022, the company’s cash and cash equivalents were $294 million compared with $324 million as of Jun 30, 2022.
At the end of the third quarter, the company had $2.7 billion of net corporate debt and $1.8 billion of non-recourse debt related to its securitized notes receivable.
During the quarter, the company repurchased 1.7 million shares of its common stock worth approximately $216 million.
2022 Outlook
For 2022, the company anticipates contract sales in the range of $1,820-$1,860 million compared with the prior estimate of $1,775-$1,875 million. Adjusted free cash flow is projected in the range of $670-$730 million, up from the earlier estimate of $650-$730 million. Adjusted EBITDA is expected to be between $950 million and $975 million, up from the prior estimate of $880-$930 million. Adjusted fully-diluted EPS for 2022 is expected to be between $10.20 and $10.64 compared with the prior estimate of $9.47-$10.35 per share.
Marriott sports a Zacks Rank #1. MAR has a trailing four-quarter earnings surprise of 18.6%, on average. The stock has declined 3.1% so far this past year.
The Zacks Consensus Estimate for MAR’s current financial year sales and EPS indicates a surge of 46.8% and 104.1%, respectively, from the year-ago period’s reported levels.
Crocs sports a Zacks Rank #1. CROX has a long-term earnings growth rate of 15%. Shares of Crocs have plunged 57.7% in the past year.
The Zacks Consensus Estimate for CROX’s 2022 sales and EPS indicates a rise of 49.6% and 20.7%, respectively, from the year-ago period’s levels.
Live Nation carries a Zacks Rank #2. LYV has a trailing four-quarter earnings surprise of 70.7%, on average. The stock has declined 25.5% in the past year.
The Zacks Consensus Estimate for LYV’s current financial year sales and EPS indicates growth of 130.8% and 117.2%, respectively, from the year-ago period’s reported levels.
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Marriott Vacations' (VAC) Q3 Earnings Top Estimates, Rise Y/Y
Marriott Vacations Worldwide Corporation (VAC - Free Report) reported impressive third-quarter 2022 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The metrics increased on a year-over-year basis.
The company’s CEO, Stephen P. Weisz, stated, "Despite the challenging macroeconomic backdrop, we had a very strong third quarter, growing contract sales by 27% compared to the prior year driven by strong tour growth. With continued growth in our business, we've returned more than $600 million in cash to shareholders this year through a combination of share repurchases and dividends."
Earnings & Revenues Discussion
During third-quarter 2022, the company reported adjusted earnings per share (EPS) of $3.02, surpassing the Zacks Consensus Estimate of $2.63 by 14.8%. In the year-ago quarter, the company reported an adjusted EPS of $1.60.
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 $1,252 million beat the consensus mark of $1,199 million. The top line increased 19% on a year-over-year basis.
Segmental Performances
Vacation Ownership: During the third quarter, revenues in the segment (excluding the impact of Alignment) totaled $1,182 million compared with $974 million reported in the prior-year quarter.
The segment’s adjusted EBITDA (including the impact of Alignment) came in at $255 million, compared with $215 million reported in the prior year quarter.
Exchange & Third-Party Management: The segment’s revenues totaled $71 million in the third quarter compared with $77 million in the prior-year quarter. Revenues, excluding cost reimbursements, fell 3% year over year.
During the third quarter, interval international active members increased 21% year over year to 1.6 million, while average revenues per member declined 9% on a year-over-year basis. The segment’s adjusted EBITDA (including the impact of Alignment) came in at $39 million compared with the $35 million reported in the prior-year quarter.
Corporate and Other Results
During the third quarter, general and administrative costs increased by $8 million year over year, owing to higher compensation and transformational initiative expenses (including procurement and artificial intelligence capabilities).
Expenses & EBITDA
During the quarter, total expenses (including the impact of alignment adjustments) came in at $1,029 million compared with $896 million reported in the year-ago quarter.
The company’s adjusted EBITDA (including the impact of alignment adjustments) in the third quarter amounted to $240 million compared with $205 million reported in the year-ago quarter.
Balance Sheet
As of Sep 30, 2022, the company’s cash and cash equivalents were $294 million compared with $324 million as of Jun 30, 2022.
At the end of the third quarter, the company had $2.7 billion of net corporate debt and $1.8 billion of non-recourse debt related to its securitized notes receivable.
During the quarter, the company repurchased 1.7 million shares of its common stock worth approximately $216 million.
2022 Outlook
For 2022, the company anticipates contract sales in the range of $1,820-$1,860 million compared with the prior estimate of $1,775-$1,875 million. Adjusted free cash flow is projected in the range of $670-$730 million, up from the earlier estimate of $650-$730 million. Adjusted EBITDA is expected to be between $950 million and $975 million, up from the prior estimate of $880-$930 million. Adjusted fully-diluted EPS for 2022 is expected to be between $10.20 and $10.64 compared with the prior estimate of $9.47-$10.35 per share.
Zacks Rank & Other Key Picks
Marriott Vacations currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the Zacks Consumer Discretionary sector are Marriott International, Inc. (MAR - Free Report) , Crocs, Inc. (CROX - Free Report) and Live Nation Entertainment, Inc. (LYV - Free Report) .
Marriott sports a Zacks Rank #1. MAR has a trailing four-quarter earnings surprise of 18.6%, on average. The stock has declined 3.1% so far this past year.
The Zacks Consensus Estimate for MAR’s current financial year sales and EPS indicates a surge of 46.8% and 104.1%, respectively, from the year-ago period’s reported levels.
Crocs sports a Zacks Rank #1. CROX has a long-term earnings growth rate of 15%. Shares of Crocs have plunged 57.7% in the past year.
The Zacks Consensus Estimate for CROX’s 2022 sales and EPS indicates a rise of 49.6% and 20.7%, respectively, from the year-ago period’s levels.
Live Nation carries a Zacks Rank #2. LYV has a trailing four-quarter earnings surprise of 70.7%, on average. The stock has declined 25.5% in the past year.
The Zacks Consensus Estimate for LYV’s current financial year sales and EPS indicates growth of 130.8% and 117.2%, respectively, from the year-ago period’s reported levels.