Vacation ownership company Marriott Vacations (NYSE:VAC) will be reporting earnings this Wednesday morning. Here’s what you need to know.
Marriott Vacations beat analysts’ revenue expectations last quarter, reporting revenues of $1.32 billion, up 5.9% year on year. It was a very strong quarter for the company, with full-year EBITDA guidance beating analysts’ expectations and a beat of analysts’ EPS estimates. It reported 1.48 million guests, down 2.1% year on year.
Is Marriott Vacations a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Marriott Vacations’s revenue to grow 11.7% year on year, a reversal from the 3.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Marriott Vacations has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Marriott Vacations’s peers in the consumer discretionary - travel and vacation providers segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Hilton Grand Vacations delivered year-on-year revenue growth of 50.8%, beating analysts’ expectations by 39.5%, and Frontier reported revenues up 52.9%, topping estimates by 4.9%. Hilton Grand Vacations traded up 8.2% following the results while Frontier was also up 17.2%.
Read our full analysis of Hilton Grand Vacations’s results here and Frontier’s results here.
There has been positive sentiment among investors in the consumer discretionary - travel and vacation providers segment, with share prices up 5.7% on average over the last month. Marriott Vacations is up 15.3% during the same time and is heading into earnings with an average analyst price target of $123 (compared to the current share price of $117.49).
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