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Marriott Vacations (VAC) Beats On Q4 Earnings, Revenues Lag

By Zacks Investment ResearchStock MarketsFeb 26, 2018 09:44PM ET
www.investing.com/analysis/marriott-vacations-vac-beats-on-q4-earnings-revenues-lag-200294584
Marriott Vacations (VAC) Beats On Q4 Earnings, Revenues Lag
By Zacks Investment Research   |  Feb 26, 2018 09:44PM ET
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Marriott Vacations Worldwide Corporation (NYSE: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.

Marriott Vacations continues to benefit from positive timeshare industry trends and has been able to maintain a steady flow of clients by offering tours to diverse locations and programs with greater outreach.

The company has been recording higher contract sales and rental revenues lately via its two major growth initiatives. The first being tours from marketing programs, namely call transfer and universal encore programs and secondly, by additional sales distributions at its new locations.

However, as the timeshare industry is extensively marketing-oriented and relies heavily on sales initiatives to attract customers, the company’s increased marketing expenses have been pressurizing margins.

Investors should note that the consensus estimate for VAC has been stable over the last 60 days. Meanwhile, VAC posted positive earnings surprises in each of the last four quarters with an average beat of 14.51%.

VAC currently has a Zacks Rank #3 (Hold) but that could change following Marriott Vacations’ earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: VAC beats on earnings. The consensus estimate called for earnings of $1.16 and the company reported earnings of $1.56 per share. Investors should note that these figures take out stock option expenses.

Revenues: VAC reported revenues of $481.2 million. This lagged the consensus mark of $497.1 million.

Key Statistics to Note: In fourth-quarter 2017, North America volume per guest (VPG) declined 1.3% year-over-year.

Marriot Vacations Worldwide Corporation Price and EPS Surprise

Stock Price Impact: In-active in pre-market trading.

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

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Marriot Vacations Worldwide Corporation (VAC): Free Stock Analysis Report

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Marriott Vacations (VAC) Beats On Q4 Earnings, Revenues Lag
 

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Marriott Vacations (VAC) Beats On Q4 Earnings, Revenues Lag

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