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Marriott Vacations (VAC) Tops Q1 Earnings & Revenues

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Marriott Vacations Worldwide Corporation (VAC - Free Report) operates as a vacation ownership company. The company markets and manages vacation ownership and related products under the Marriott Vacation Club and Grand Residences by Marriott brands, The Ritz-Carlton Destination Club brand, The Ritz-Carlton Residences brand.

Marriott Vacations continues to benefit from positive timeshare industry trends and has been able to maintain a steady flow of clients by offering tours to diverse locations and programs with greater outreach.

The company has been recording higher contract sales and rental revenues lately. Also, volume per guest – sales volume for a given period divided by the number of groups toured – for Marriott Vacations continues to increase backed by strong marketing initiatives.

However, as the timeshare industry is extensively marketing-oriented and relies heavily on sales initiatives to attract customers, the company’s increased marketing expenses have been pressurizing margins.

Investors should note that the consensus estimate for VAC has moved slightly upwards over the last 60 days. Meanwhile, VAC’s earnings have been mixed over the past few quarters. The company has posted negative earnings surprises in two of the last four quarters, with an average miss of 5.60%. Moreover, revenues have missed the Zacks Consensus Estimate in all of the trailing four quarters.

Marriot Vacations Worldwide Corporation Price and EPS Surprise

VAC currently has a Zacks Rank #3 (Hold) but that could change following Marriott Vacations’ earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: VAC beats on earnings. Our consensus earnings estimate called for earnings per share of $1.18 and the company reported earnings of $1.22 per share. Investors should note that these figures take out stock option expenses.

Revenues: VAC reported revenues of $487.5 million. This surpassed our consensus estimate of $479 million.

Key Stats to Note: In first-quarter 2017, North America volume per guest (VPG) increased 5.6% year over year.

Stock Price Impact: In-active in pre-market trading.

Check back for our full write up on this VAC earnings report!

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