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Marriott Vacations (VAC) Raises 2022 View on Strong Occupancy

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Marriott Vacations Worldwide Corporation VAC recently raised its 2022 outlook. The company continues to benefit from robust occupancies.

The company stated that it continues to expect the adjusted development profit margin to remain robust for the full year of 2022. Stephen P. Weisz, CEO of Marriott Vacations, said, “We continue to see very high owner occupancies at our resorts, enabling us to drive strong tour growth and contract sales during the second quarter of 2022. As a result of this, combined with the continued strength in our VPGs, we are increasing our full year contract sales guidance by $100 million for 2022.”

The company expects contract sales in the range of $1,775 million to $1,875 million compared with the prior estimate of $1,675-$1,775 million. Adjusted EBITDA is anticipated in the band of $880 million to $930 million, up from the prior estimate of $860 million and $920 million. Adjusted free cash flow is projected to be $560-$640 million, up from the prior estimate of $590 million to $670 million.

Shares of Marriott Vacations have fallen 23.6% in the past six months, compared with the industry’s decline of 13.8%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Occupancy Increasing Gradually

The Zacks Rank #3 (Hold) company has been witnessing improvement in occupancy rates, reflecting people’s willingness to go on vacations. During the first quarter of 2022, the company reported solid occupancies with respect to its vacation ownership business. Despite a lag in recovery in certain urban and international markets due to the Omicron variant, the company reported total occupancy of 88%, in line with the pre-COVID levels.

It reported the return of international travelers to key domestic markets like Florida and Hawaii. The company remains optimistic going forward, owing to an increasing willingness among customers to resume travel. Meanwhile, Marriott Vacations stated that owner and preview reservations for the first half of 2022 were up 10% from 2019 levels.

Key Picks

Some better-ranked stocks in the Consumer Discretionary sector are Civeo Corporation CVEO, Bluegreen Vacations Holding Corporation BVH and Funko, Inc. FNKO.

Civeo carries a Zacks Rank #2 (Buy) at present. The company has a trailing four-quarter earnings surprise of 1,565.1%, on average. Shares of the company have surged 58.1% in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for CVEO’s 2022 sales and earnings per share (EPS) suggests growth of 12.5% and 1,450%, respectively, from the year-ago period’s levels.

Bluegreen Vacations carries a Zacks Rank #2. BVH has a trailing four-quarter earnings surprise of 85.9%, on average. The stock has climbed 39.8% in the past year.

The Zacks Consensus Estimate for BVH’s current financial year sales and EPS indicates growth of 11.2% and 35.1%, respectively, from the year-ago period’s reported levels.

Funko carries a Zacks Rank #2. FNKO has a trailing four-quarter earnings surprise of 78.7%, on average. Shares of the company have declined 6.1% in the past year.

The Zacks Consensus Estimate for Funko’s current financial year sales and EPS suggests growth of 26.8% and 31%, respectively, from the year-ago period’s reported levels.


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