Vacation ownership company Marriott Vacations (NYSE:VAC) will be reporting results tomorrow after market hours. Here’s what to expect.
Marriott Vacations beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $1.31 billion, up 10% year on year. It was a strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates. It reported 1.55 million guests, down 1.7% year on year.
Is Marriott Vacations a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Marriott Vacations’s revenue to grow 4.1% year on year to $1.24 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.56 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Marriott Vacations has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Marriott Vacations’s peers in the travel and vacation providers segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Choice Hotels delivered year-on-year revenue growth of 8.8%, beating analysts’ expectations by 2.8%, and Sabre reported revenues up 4%, in line with consensus estimates. Choice Hotels traded up 1.9% following the results while Sabre was also up 32.6%.
Read our full analysis of Choice Hotels’s results here and Sabre’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the travel and vacation providers stocks have shown solid performance, the group has generally underperformed, with share prices down 3.3% on average over the last month. Marriott Vacations’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $104.73 (compared to the current share price of $87.47).
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