We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Marriott Vacations (VAC) Q2 Earnings: Surprise in Store?
Read MoreHide Full Article
Marriott Vacations Worldwide Corporation (VAC - Free Report) is set to report second-quarter 2016 results on Jul 21, before the opening bell.
Last quarter, this Florida-based vacation ownership company posted a negative earnings surprise of 11.22%. In fact, the company has surpassed earnings estimates in two out of the past four quarters, with an average positive surprise of 0.41%.
Let’s see how things are shaping up for the upcoming announcement.
Factors at Play
Marriott Vacations, one of the major players in the timeshare industry, is poised to benefit from positive timeshare industry trends. The company has been recording higher contract sales and rental revenues. The trend is expected to continue in the second quarter of 2016.
The company has been able to maintain a steady flow of clients by offering tours to diverse locations and programs with greater outreach.
Volume per guest – sales volume for a given period divided by the number of groups toured – for Marriott Vacations has been consistently increasing since the beginning of 2014. We expect the positive trend to continue in the to-be-reported quarter as well backed by strong marketing initiatives.
However, the timeshare industry is extensively marketing-oriented and relies heavily on sales initiatives to attract customers. Therefore, the company’s increased marketing expenses would likely put pressure on second quarter margins.
Earnings Whispers
Our proven model does not conclusively show that Marriott Vacations is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Earnings ESP for Marriott Vacations is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.03.
Zacks Rank: Marriott Vacations has a Zacks Rank #3, which, when combined with 0.00% ESP, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are some stocks in the consumer discretionary sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Intrawest Resorts Holdings, Inc. (SNOW - Free Report) with an Earnings ESP of +1.44% and a Zacks Rank #1.
Hasbro Inc. (HAS - Free Report) with an Earnings ESP of +5.13% and a Zacks Rank #3.
Wynn Resorts Ltd. (WYNN - Free Report) , with an Earnings ESP of +1.03% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Marriott Vacations (VAC) Q2 Earnings: Surprise in Store?
Marriott Vacations Worldwide Corporation (VAC - Free Report) is set to report second-quarter 2016 results on Jul 21, before the opening bell.
Last quarter, this Florida-based vacation ownership company posted a negative earnings surprise of 11.22%. In fact, the company has surpassed earnings estimates in two out of the past four quarters, with an average positive surprise of 0.41%.
Let’s see how things are shaping up for the upcoming announcement.
Factors at Play
Marriott Vacations, one of the major players in the timeshare industry, is poised to benefit from positive timeshare industry trends. The company has been recording higher contract sales and rental revenues. The trend is expected to continue in the second quarter of 2016.
The company has been able to maintain a steady flow of clients by offering tours to diverse locations and programs with greater outreach.
Volume per guest – sales volume for a given period divided by the number of groups toured – for Marriott Vacations has been consistently increasing since the beginning of 2014. We expect the positive trend to continue in the to-be-reported quarter as well backed by strong marketing initiatives.
However, the timeshare industry is extensively marketing-oriented and relies heavily on sales initiatives to attract customers. Therefore, the company’s increased marketing expenses would likely put pressure on second quarter margins.
Earnings Whispers
Our proven model does not conclusively show that Marriott Vacations is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Earnings ESP for Marriott Vacations is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.03.
MARRIOT VAC WW Price and EPS Surprise
MARRIOT VAC WW Price and EPS Surprise | MARRIOT VAC WW Quote
Zacks Rank: Marriott Vacations has a Zacks Rank #3, which, when combined with 0.00% ESP, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are some stocks in the consumer discretionary sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Intrawest Resorts Holdings, Inc. (SNOW - Free Report) with an Earnings ESP of +1.44% and a Zacks Rank #1.
Hasbro Inc. (HAS - Free Report) with an Earnings ESP of +5.13% and a Zacks Rank #3.
Wynn Resorts Ltd. (WYNN - Free Report) , with an Earnings ESP of +1.03% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>