Marriott Q2 Earnings Beat, Sales Miss; FY View Raised
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 itineraries, thereby resulting in higher contract sales and development margins.
Investors should also note the recent earnings estimate revisions for VAC has remained stable. Meanwhile, VAC has a mixed history in earnings season. Marriott Vacations Worldwide has reported 2 positive earnings surprises for the last four quarters, making it a positive average earnings surprise of around 0.41%.
Currently, VAC has a Zacks Rank #3 (Hold), but that could change following Marriott Vacations Worldwide’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
MARRIOT VAC WW Price, Consensus and EPS Surprise
MARRIOT VAC WW Price, Consensus and EPS Surprise | MARRIOT VAC WW Quote
Earnings: VAC beat on earnings. Our consensus earnings estimate called for EPS of $1.03 per share, and the company reported EPS of $1.08 per share instead. Investors should note that these figures take out stock option expenses.
Revenues: VAC reported revenues of $429 million. This missed our consensus estimate of $444 million.
Key Stats to Note: North America volume per guest (VPG) remained almost flat year over year. Total company contract sales, excluding residential sales, were $166 million; $0.1 million higher than the year-ago quarter. Adjusted EBITDA were $64.2 million, up 4.1% year over year.
The company raised 2016 earnings guidance and now expects earnings to be in the range of $4.31 to $4.66 compared to a range of $4.21 to $4.59 expected previously. The increased guidance reflects lower shares outstanding.
Stock Price: Gained around 7% in pre-market trading.
Check back later for our full write up on this VAC earnings report later!
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MARRIOT VAC WW (VAC): Free Stock Analysis Report
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