Back to top

Image: Bigstock

Marriott Vacations (VAC) Q1 Earnings Beat Estimates, Stock Up

Read MoreHide Full Article

Marriott Vacations Worldwide Corporation (VAC - Free Report) reported first-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate after missing in the preceding quarter. Following the results, the stock increased 3.5% in after-hour trading session on May 3.

VAC’s president & chief executive officer, John Geller, stated, “Consumers continue to prioritize travel, which we’re seeing in our occupancies, Abound by Marriott Vacations is generating excitement among our existing owners and first time buyers, and we are making investments in our business to support our long term growth.”

Earnings & Revenue Discussion

During first-quarter 2023, Marriott Vacations reported adjusted earnings per share (EPS) of $2.54, beating the Zacks Consensus Estimate of $1.84 by 38%. In the year-ago quarter, it reported adjusted earnings of $1.70.

Quarterly revenues of $1,169 million surpassed the consensus mark of $1,127 million and increased 11.1% on a year-over-year basis.

Segmental Performances

Vacation Ownership: Revenues from this segment totaled $1,097 million, up 14.7% from $956 million reported in the prior-year quarter.

Adjusted EBITDA was $229 million, up 15.1% year over year.

Exchange & Third-Party Management: The segment’s revenues of $71 million declined 15.5% from $84 million reported in the year-ago quarter. Revenues, excluding cost reimbursements, decreased 12% year over year.

During first-quarter 2023, interval international active members decreased 2% year over year to 1.6 million. Average revenues per member declined 5% on a year-over-year basis. Adjusted EBITDA was $37 million, down 13% year over year.

Corporate and Other Results

General and administrative costs totaled $68 million compared with $61 million in the prior-year quarter.

Expenses & EBITDA

Total expenses increased 11.4% year over year to $1,015 million from $987 million reported in the year-ago quarter.

Adjusted EBITDA amounted to $203 million compared with $188 million reported in the prior-year quarter.

Balance Sheet

As of Mar 31, Marriott Vacations’s cash and cash equivalents were $306 million compared with $524 million as of Dec 31, 2022.

At the end of the first quarter, the company had $3.1 billion of corporate debt and $1.9 billion of non-recourse debt related to its securitized notes receivable.

2023 Outlook

For 2023, management anticipates contract sales in the range of $1,930-$2,000 million. Adjusted free cash flow is projected in the range of $600-$670 million. Adjusted EBITDA is estimated to be between $950 million and $1,000 million.

Adjusted EPS is expected to be between $11.05 and $11.85, up from the prior estimate of $10.75 and $11.54.

Zacks Rank & Key Picks

Marriott Vacations carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks from the Zacks Consumer Discretionary sector.

Boyd Gaming Corporation (BYD - Free Report) currently sports a Zacks Rank #1 (Strong Buy). BYD has a trailing four-quarter earnings surprise of 13.7%, on average. The stock has increased 30.6% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BYD’s 2023 sales and EPS indicates rises of 1.4% and 2.8%, respectively, from the year-ago period’s levels.

Crocs, Inc. (CROX - Free Report) carries a Zacks Rank #2 (Buy). CROX has a trailing four-quarter earnings surprise of 19.6%, on average. The stock has surged 71.8% in the past six months.

The Zacks Consensus Estimate for CROX’s 2023 sales and EPS indicates improvements of 13.1% and 2.8%, respectively, from the year-ago period’s levels.

PlayAGS, Inc. (AGS - Free Report) carries a Zacks Rank #2. AGS has a trailing four-quarter earnings surprise of 133.3%, on average. The stock has declined 24.7% in the past six months.

The Zacks Consensus Estimate for AGS’ 2024 sales and EPS indicates increases of 3% and 1,873.3%, respectively, from the year-ago period’s levels.

Published in