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Marriott Vacations (VAC) to Post Q4 Earnings: What's in Store?

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Marriott Vacations Worldwide Corporation (VAC - Free Report) is scheduled to report fourth-quarter 2022 results on Feb 22, after market close. In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 14.8% and 4.5%, respectively.

The Trend in Estimate Revision

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $2.90 per share, indicating a rise of 21.9% from $2.38 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at approximately $1,228 million, suggesting a rise of 11.6% from the year-ago quarter’s reported figure.

Let's look at how things have shaped up in the quarter.

Factors to Note

Marriott Vacations is likely to have witnessed revenue growth in the fourth quarter on growth in tours. The introduction of a new Owner benefit and exchange program, Abound, in the second quarter of 2022, also bodes well.   

Robust vacation revenues are likely to have aided the top line. The Zacks Consensus Estimate for revenues from the vacation ownership products for the fourth quarter is pegged at $440 million, which implies growth of 20.9% from the past year quarter’s reported value.  

The bottom line of the company is likely to have been impacted by inflationary pressure. Escalated marketing and sales expenses and management and exchange costs are likely to have affected total costs. Also, the pandemic-related risks are expected to have affected growth in the to-be-reported quarter.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Marriott Vacations this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) to beat earnings. But that's not the case here.

Earnings ESP: Marriott Vacations has an Earnings ESP of -2.48%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider as our model shows that these too have the right combination of elements to post an earnings beat in the quarter to be reported:

Playa Hotels & Resorts N.V. (PLYA - Free Report) currently has an Earnings ESP of +100.00% and a Zacks Rank #2.

PLYA’s earnings beat the consensus mark in three of the last four quarters and missed on the other occasion. It has a trailing four-quarter earnings surprise of 19.4%, on average. Earnings for the to-be-reported quarter are expected to grow 66.7% year over year.

iQIYI, Inc. (IQ - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank #2.

IQ’s earnings beat the consensus mark in three of the last four quarters and missed the same on the remaining occasion. It has a trailing four-quarter negative earnings surprise of 9%, on average. Earnings for the to-be-reported quarter are expected to grow 125% year over year.

Churchill Downs Incorporated (CHDN - Free Report) currently has an Earnings ESP of +15.84% and a Zacks Rank #2.

CHDN’s earnings beat the consensus mark in all the last four quarters. It has a trailing four-quarter earnings surprise of 11.1%, on average. Earnings for the to-be-reported quarter are expected to grow 30.7% year over year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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