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Marriott Vacations (VAC) Q1 Earnings & Revenues Top Estimates
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Marriott Vacations Worldwide Corporation (VAC - Free Report) reported first-quarter 2024 results, with both earnings and revenues beating their respective Zacks Consensus Estimate for the second quarter straight. The top line increased on a year-over-year basis, but the bottom line declined.
John Geller, president and CEO, Marriott Vacations, said that bookings for the upcoming summer season had significantly increased from the prior-year level, both within the country and abroad. The demand for travel to Maui is nearing the pre-wildfires levels, indicating a strong resurgence in tourism. These positive trends are likely to boost its 2024 contract sales by an estimated range of 6-9%.
Earnings & Revenue Discussion
Adjusted earnings per share (EPS) of $1.80 surpassed the Zacks Consensus Estimate of $1.66 by 8.4%. In the year-ago quarter, it reported adjusted EPS of $2.54.
Quarterly revenues of $1,195 million topped the consensus mark of $1,184 million by 0.9%. The top line increased 2% on a year-over-year basis.
Marriott Vacations Worldwide Corporation Price, Consensus and EPS Surprise
Vacation Ownership: The segment’s revenues totaled $1.13 billion, up 2.9% from $1.1 billion reported in the prior-year quarter.
VAC’s Vacation Ownership contract sales fell 1% year over year to $428 million. Excluding Maui, contract sales rose 3% year over year.
Adjusted EBITDA came in at $213 million, down 7% from $229 million reported in the year-ago quarter.
Exchange & Third-Party Management: Segmental revenues of $65 million increased 8.5% year over year. Revenues, excluding cost reimbursements, declined 6% year over year.
The interval of international active members remained in line with the year-ago figure of 1.6 million. Average revenues per member declined 1% on a year-over-year basis. Adjusted EBITDA was $32 million, down 14% year over year.
Corporate and Other Results
General and administrative costs totaled $63 million, down 8% year over year. Our estimate was $73.5 million.
Expenses & EBITDA
Total expenses increased 4.2% year over year to $1.1 billion from $1.02 billion reported in the year-ago quarter. We expected the metric to be $1.04 billion.
Adjusted EBITDA amounted to $187 million compared with $203 million reported in the prior-year quarter. Our model precited the metric to be $173.2 million.
Balance Sheet
As of Mar 31, the company’s cash and cash equivalents were $237 million compared with $248 million as of Dec 31, 2023.
At the end of the first quarter, the company had $3.1 billion of corporate debt and $2.2 billion of non-recourse debt related to its securitized notes receivable.
2024 Outlook
Management continues to anticipate contract sales in the range of $1,880-$1,930 million compared with $1,772 million in 2023. Adjusted free cash flow is projected to be in the range of $400-$450 million. Adjusted EBITDA is expected to be between $760 million and $800 million compared with $761 million in the prior year. Adjusted EPS is suggested to be between $7.45 and $8.16, down from the prior projection of $7.65-$8.35.
Marriott Vacations currently carries a Zacks Rank #3 (Hold).
Boyd Gaming Corporation (BYD - Free Report) reported mixed first-quarter 2024 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same. The top and bottom lines declined on a year-over-year basis.
BYD’s performance was impacted by January's severe winter weather in the Midwest and South, and a softer Las Vegas local market.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported stellar first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
RCL benefited from robust demand, strong pricing (on closer-in demand), solid onboard spending and favorable timing of expenses. It also raised its 2024 adjusted EPS guidance on the back of an exceptional WAVE season and continued strong demand.
Pool Corporation (POOL - Free Report) reported drab first-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. Also, the top and bottom lines declined year over year. POOL’s operations were affected by lower pool construction activity, economic pressures and weather-related constraints.
POOL raised its annual earnings guidance range to account for year-to-date tax benefits. It expects sales and gross margin trends to improve with the onset of the swimming pool season, aligning with seasonal buying patterns.
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Marriott Vacations (VAC) Q1 Earnings & Revenues Top Estimates
Marriott Vacations Worldwide Corporation (VAC - Free Report) reported first-quarter 2024 results, with both earnings and revenues beating their respective Zacks Consensus Estimate for the second quarter straight. The top line increased on a year-over-year basis, but the bottom line declined.
John Geller, president and CEO, Marriott Vacations, said that bookings for the upcoming summer season had significantly increased from the prior-year level, both within the country and abroad. The demand for travel to Maui is nearing the pre-wildfires levels, indicating a strong resurgence in tourism. These positive trends are likely to boost its 2024 contract sales by an estimated range of 6-9%.
Earnings & Revenue Discussion
Adjusted earnings per share (EPS) of $1.80 surpassed the Zacks Consensus Estimate of $1.66 by 8.4%. In the year-ago quarter, it reported adjusted EPS of $2.54.
Quarterly revenues of $1,195 million topped the consensus mark of $1,184 million by 0.9%. The top line increased 2% on a year-over-year basis.
Marriott Vacations Worldwide Corporation Price, Consensus and EPS Surprise
Marriott Vacations Worldwide Corporation price-consensus-eps-surprise-chart | Marriott Vacations Worldwide Corporation Quote
Segmental Performances
Vacation Ownership: The segment’s revenues totaled $1.13 billion, up 2.9% from $1.1 billion reported in the prior-year quarter.
VAC’s Vacation Ownership contract sales fell 1% year over year to $428 million. Excluding Maui, contract sales rose 3% year over year.
Adjusted EBITDA came in at $213 million, down 7% from $229 million reported in the year-ago quarter.
Exchange & Third-Party Management: Segmental revenues of $65 million increased 8.5% year over year. Revenues, excluding cost reimbursements, declined 6% year over year.
The interval of international active members remained in line with the year-ago figure of 1.6 million. Average revenues per member declined 1% on a year-over-year basis. Adjusted EBITDA was $32 million, down 14% year over year.
Corporate and Other Results
General and administrative costs totaled $63 million, down 8% year over year. Our estimate was $73.5 million.
Expenses & EBITDA
Total expenses increased 4.2% year over year to $1.1 billion from $1.02 billion reported in the year-ago quarter. We expected the metric to be $1.04 billion.
Adjusted EBITDA amounted to $187 million compared with $203 million reported in the prior-year quarter. Our model precited the metric to be $173.2 million.
Balance Sheet
As of Mar 31, the company’s cash and cash equivalents were $237 million compared with $248 million as of Dec 31, 2023.
At the end of the first quarter, the company had $3.1 billion of corporate debt and $2.2 billion of non-recourse debt related to its securitized notes receivable.
2024 Outlook
Management continues to anticipate contract sales in the range of $1,880-$1,930 million compared with $1,772 million in 2023. Adjusted free cash flow is projected to be in the range of $400-$450 million. Adjusted EBITDA is expected to be between $760 million and $800 million compared with $761 million in the prior year. Adjusted EPS is suggested to be between $7.45 and $8.16, down from the prior projection of $7.65-$8.35.
Zacks Rank & Recent Consumer Discretionary Releases
Marriott Vacations currently carries a Zacks Rank #3 (Hold).
Boyd Gaming Corporation (BYD - Free Report) reported mixed first-quarter 2024 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same. The top and bottom lines declined on a year-over-year basis.
BYD’s performance was impacted by January's severe winter weather in the Midwest and South, and a softer Las Vegas local market.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported stellar first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis.
RCL benefited from robust demand, strong pricing (on closer-in demand), solid onboard spending and favorable timing of expenses. It also raised its 2024 adjusted EPS guidance on the back of an exceptional WAVE season and continued strong demand.
Pool Corporation (POOL - Free Report) reported drab first-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. Also, the top and bottom lines declined year over year. POOL’s operations were affected by lower pool construction activity, economic pressures and weather-related constraints.
POOL raised its annual earnings guidance range to account for year-to-date tax benefits. It expects sales and gross margin trends to improve with the onset of the swimming pool season, aligning with seasonal buying patterns.