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Marriott Vacations (VAC) Misses Q1 Earnings And Revenues

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 decent history in earnings season. Marriott Vacations Worldwide has reported 3 positive earnings surprises for the last four quarters, making it a positive average earnings surprise of around 9.02%. In the revenue front, the company has reported negative earnings surprises in 2 of the last 4 quarters.

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:

Earnings: VAC missed on earnings. Our consensus earnings estimate called for EPS of 98 cents per share, and the company reported EPS of 87 cents per share instead. Investors should note that these figures take out stock option expenses.

Revenues: VAC reported revenues of $425 million. This missed our consensus estimate of $439 million.

Key Stats to Note: North America volume per guest (VPG) decreased 3.9% year over year. Total company contract sales, excluding residential sales, were $153.5 million; $44.9 million lower than the year-ago quarter. Adjusted EBITDA were $5.16 million, down 14.2% year over year.

The company expects earnings to be in the range of EPS of $4.21 to $4.59 in 2016.

Stock Price: Inactive in pre-market trading.

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

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