It has been about a month since the last earnings report for Marriott Vacations Worldwide (VAC Quick QuoteVAC - Free Report) . Shares have added about 10.6% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Marriott Vacations Worldwide due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Marriott Vacations Worldwide Corporation before we dive into how investors and analysts have reacted as of late.

Marriott Vacations’ Q3 Earnings Top & Revenues Miss Estimates

Marriott Vacations reported mixed results for its third quarter of 2025, with adjusted earnings exceeding the Zacks Consensus Estimate while revenues missed the same. Meanwhile, both metrics declined year over year.

The quarter’s performance was affected by lower Vacation Ownership sales, with contract sales declining 4% year over year and softness in key markets like Orlando and Maui. However, management has implemented meaningful actions that are expected to improve results going forward.

Q3 Earnings and Revenue Performance

Adjusted earnings per share of $1.69 surpassed the Zacks Consensus Estimate of $1.64 by 3.1%. In the year-ago quarter, it reported an adjusted EPS of $1.80.

Quarterly revenues of $1.26 billion missed the consensus mark of $1.33 billion by 5.2% and decreased 3.2% on a year-over-year basis.

Segment Highlights

Vacation Ownership: Revenue (excluding cost reimbursements) declined 2% year over year to $748 million. Consolidated contract sales were $439 million, down 4% year over year, as both tours and VPG declined 1% and 5 %. Segment adjusted EBITDA decreased 16% to $195 million, with margin contracting 410 bps to 26.1%.

Exchange & Third-Party Management: Revenue declined 6% year over year to $51 million, reflecting lower Interval International revenue. Adjusted EBITDA fell 8% to $21 million, with margin contracting 100 bps to 42.3%.

Corporate and Other: Expenses fell 12% compared to the prior year quarter.

Margins and Profitability

Adjusted EBITDA fell 15% year over year to $170 million, translating to a 20.9% margin, down from 24.1% a year ago.

Adjusted operating income fell to $78 million, marking a 32% decrease

Balance Sheet & Liquidity

The company ended the third quarter with $1.4 billion in liquidity, comprising $474 million of cash and equivalents and $786 million in available credit.

Total inventory stood at $1 billion, while debt included $4 billion in corporate debt and $2 billion in non-recourse securitized debt tied to vacation ownership notes receivable.

The company borrowed $575 million by issuing senior notes with a 6.5% interest rate, which must be repaid in 2033. At the same time, it canceled a previously arranged loan facility.

2025 Outlook Updated

For 2025, Marriott Vacations updated its 2025 guidance by narrowing its outer range, with contract sales expected to be between $1.76-$1.78 billion (prior expectation was between $1.74- $1.83 billion), adjusted EBITDA of $740-$755 million (prior expectation was between $750-$780 million), and adjusted EPS of $6.70-$7.10 (prior expectation was between $6.40-$7.10).

Management highlighted confidence in continued demand for leisure travel and reiterated $150-$200 million in expected EBITDA benefits from its modernization program by 2026. Free cash flow for 2025 is projected at $235-$270 million (prior expectation was between $270-$330 million).

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

VGM Scores

Currently, Marriott Vacations Worldwide has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Marriott Vacations Worldwide has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Marriott Vacations Worldwide belongs to the Zacks Leisure and Recreation Services industry. Another stock from the same industry, Caesars Entertainment (CZR Quick QuoteCZR - Free Report) , has gained 19.7% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.

Caesars Entertainment reported revenues of $2.87 billion in the last reported quarter, representing a year-over-year change of -0.2%. EPS of -$0.27 for the same period compares with -$0.04 a year ago.

Caesars Entertainment is expected to post a loss of $0.07 per share for the current quarter, representing a year-over-year change of -240%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.1%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Caesars Entertainment. Also, the stock has a VGM Score of D.