Marriott Vacations Worldwide Corporation (VAC) 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.
Strong marketing initiatives have been helping the company to keep its volume per guest levels strong over the past few quarters at most of its locations, thereby resulting in higher contract sales and development margins.
Investors should also note the recent earnings estimate revisions for VAC has remained stable. Meanwhile, Marriott Vacations Worldwide has reported two negative and two positive earnings for the last four quarters, making it a negative average earnings surprise of around 0.38%. On the revenue front, the company has reported negative earnings surprises in three of the last four quarters.
Currently, VAC has a Zacks Rank #2 (Buy) but that could change following Marriott Vacations’ earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: VAC beat on earnings. Our consensus earnings estimate called for EPS of 61 cents per share, and the company reported EPS of 69 cents per share instead. Investors should note that these figures take out stock option expenses.
Revenues: VAC reported revenues of $511.0 million. This missed our consensus estimate of $536.0 million.
Key Stats to Note: North America volume per guest (VPG) increased 5% year over year. Adjusted EBITDA were $49.0 million, up 28% year over year.
The company expects adjusted earnings per share in the range of $3.16 to $3.35 in 2015. Adjusted EBITDA is expected in the range of $215 million to $225 million.
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