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’s earnings have been mostly positive over the past few quarters. The company has posted positive earnings surprises in each of the last four quarters with an average beat of 22.13%.
VAC currently has a Zacks Rank #2 (Buy) 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 misses on earnings. The consensus earnings estimate called for earnings per share of $1.50 and the company reported earnings of $1.39 per share. Investors should note that these figures take out stock option expenses.
Revenues: VAC reported revenues of $570.8 million. This surpassed the consensus estimate of $534.1 million.
Key Stats to Note: In first-quarter 2018, North America volume per guest (VPG) increased 1% year over year.
Stock Price Impact: Shares increased a mere 0.1% at the time of writing this report.
Marriot Vacations Worldwide Corporation Price, Consensus and EPS Surprise
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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