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Marriott Vacations (VAC) to Post Q3 Earnings: What's in Store?
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Marriott Vacations Worldwide Corporation (VAC - Free Report) is scheduled to report third-quarter 2023 results on Nov 01, after market close. In the last reported quarter, the company’s earnings and revenues missed the Zacks Consensus Estimate by 22.1% and 5.1%, respectively. The top line increased year over year, while the bottom line fell from the prior-year quarter’s figure.
Notably, VAC surpassed earnings estimates mark twice in the trailing four quarters and missed twice, the average surprise being 6.7%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for Marriott Vacations’ third-quarter earnings per share (EPS) remained unchanged at $2.19 in the past seven days. The estimated figure indicates a 27.5% decline from the year-ago level.
Marriot Vacations Worldwide Corporation Price and EPS Surprise
For revenues, the consensus mark is pegged at approximately $1,201 million, suggesting a decline of 4.1% from the year-ago quarter’s reported figure.
Let's look at how things have shaped up in the quarter.
Factors to Note
Marriott Vacations' third-quarter earnings and revenues are expected to have declined year over year due to lower contract sales and Volumes Per Guest (VPG). Economic uncertainties and reduced consumer spending also pose concerns for the company's performance.
However, improvement in occupancy rates and sales-boosting initiatives are expected to offset the adverse effects of the headwinds partially. Also, robust vacation revenues are likely to have aided the top line.
Meanwhile, the company's bottom line is likely to have been affected by inflationary pressure. Escalated marketing and sales expenses and management and exchange costs are likely to have affected total costs. For the third quarter, our model predicts that the operating margin will decline 560 basis points year over year to 13.6%.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Marriott Vacations this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) to beat earnings. But that's not the case here.
Earnings ESP: Marriott Vacations has an Earnings ESP of -1.08%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this time around.
MGM Resorts International (MGM - Free Report) has an Earnings ESP of +3.03% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of MGM Resorts have improved by 0.9% in the past year. MGM’s earnings surpassed the consensus mark in three of the four quarters and missed once, the average surprise being 105.7%.
Marriott International, Inc. (MAR - Free Report) has an Earnings ESP of +1.72% and a Zacks Rank #3.
Shares of Marriott have jumped 19.3% in the past year. MAR’s earnings outpaced the consensus mark in each of the trailing four quarters, the average surprise being 5.5%.
DraftKings Inc. (DKNG - Free Report) has an Earnings ESP of +17.52% and a Zacks Rank #3.
Shares of DraftKings have climbed 79.3% in the past year. DKNG’s earnings outshined the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 12%.
Image: Bigstock
Marriott Vacations (VAC) to Post Q3 Earnings: What's in Store?
Marriott Vacations Worldwide Corporation (VAC - Free Report) is scheduled to report third-quarter 2023 results on Nov 01, after market close. In the last reported quarter, the company’s earnings and revenues missed the Zacks Consensus Estimate by 22.1% and 5.1%, respectively. The top line increased year over year, while the bottom line fell from the prior-year quarter’s figure.
Notably, VAC surpassed earnings estimates mark twice in the trailing four quarters and missed twice, the average surprise being 6.7%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for Marriott Vacations’ third-quarter earnings per share (EPS) remained unchanged at $2.19 in the past seven days. The estimated figure indicates a 27.5% decline from the year-ago level.
Marriot Vacations Worldwide Corporation Price and EPS Surprise
Marriot Vacations Worldwide Corporation price-eps-surprise | Marriot Vacations Worldwide Corporation Quote
For revenues, the consensus mark is pegged at approximately $1,201 million, suggesting a decline of 4.1% from the year-ago quarter’s reported figure.
Let's look at how things have shaped up in the quarter.
Factors to Note
Marriott Vacations' third-quarter earnings and revenues are expected to have declined year over year due to lower contract sales and Volumes Per Guest (VPG). Economic uncertainties and reduced consumer spending also pose concerns for the company's performance.
However, improvement in occupancy rates and sales-boosting initiatives are expected to offset the adverse effects of the headwinds partially. Also, robust vacation revenues are likely to have aided the top line.
Meanwhile, the company's bottom line is likely to have been affected by inflationary pressure. Escalated marketing and sales expenses and management and exchange costs are likely to have affected total costs. For the third quarter, our model predicts that the operating margin will decline 560 basis points year over year to 13.6%.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Marriott Vacations this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) to beat earnings. But that's not the case here.
Earnings ESP: Marriott Vacations has an Earnings ESP of -1.08%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With the Favorable Combination
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this time around.
MGM Resorts International (MGM - Free Report) has an Earnings ESP of +3.03% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of MGM Resorts have improved by 0.9% in the past year. MGM’s earnings surpassed the consensus mark in three of the four quarters and missed once, the average surprise being 105.7%.
Marriott International, Inc. (MAR - Free Report) has an Earnings ESP of +1.72% and a Zacks Rank #3.
Shares of Marriott have jumped 19.3% in the past year. MAR’s earnings outpaced the consensus mark in each of the trailing four quarters, the average surprise being 5.5%.
DraftKings Inc. (DKNG - Free Report) has an Earnings ESP of +17.52% and a Zacks Rank #3.
Shares of DraftKings have climbed 79.3% in the past year. DKNG’s earnings outshined the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 12%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.