Marriott Vacations Worldwide (NYSE:VAC) Issues Quarterly Earnings Results

Key Points

• Marriott Vacations beat EPS estimates, reporting $2.64 per share versus the $2.57 consensus, while revenue of $1.37 billion fell short of the $1.42 billion estimate. Revenue grew 8.2% year over year.
• Third-quarter contract sales increased 29% to $565 million and adjusted EBITDA rose 27% to $216 million; the company raised its full-year guidance midpoint to $2.13 billion in contract sales and $820 million in adjusted EBITDA.
• Hurricane Lowell is expected to reduce 2026 profit by $16 million and delay the planned sale of the Sheraton Kauaʻi Resort, which management expects to sell in 2027.

Marriott Vacations Worldwide (NYSE:VAC - Get Free Report) released its earnings results on Wednesday. The company reported $2.64 earnings per share for the quarter, topping analysts' consensus estimates of $2.57 by $0.07, FiscalAI reports. The firm had revenue of $1.37 billion during the quarter, compared to analyst estimates of $1.42 billion. Marriott Vacations Worldwide had a negative net margin of 6.47% and a positive return on equity of 12.27%. The business's revenue was up 8.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.69 EPS.

Here are the key takeaways from Marriott Vacations Worldwide's conference call:

• Third-quarter contract sales rose 29% to $565 million and adjusted EBITDA increased 27% to $216 million. Marriott Vacations raised the midpoint of its full-year guidance to $2.13 billion in contract sales and $820 million in adjusted EBITDA.
• Commercial initiatives drove VPG up 30% to $4,822, while marketing and sales costs fell to 48% of contract sales, a 600-basis-point improvement year over year. Management said owner engagement, upgraded loyalty tiers, and its sales-tour matching system are contributing, with further growth initiatives still scaling.
• Net corporate leverage declined to 3.6 times from 4.2 times at the start of the year, and the company expects $420 million of adjusted free cash flow for 2026. Management said it continues to prioritize debt reduction while retaining flexibility for shareholder returns.
• Hurricane Lowell is expected to reduce 2026 profits by $16 million, including an estimated $11 million in the fourth quarter, primarily because the Sheraton Kauaʻi Resort is expected to remain closed through year-end. The damage also delays the resort’s planned sale by a couple of quarters, though the company expects to sell it in 2027 and pursue an insurance claim.

Marriott Vacations Worldwide Trading Down 4.6%

VAC stock traded down $5.42 during mid-day trading on Wednesday, reaching $113.17. The company's stock had a trading volume of 528,281 shares, compared to its average volume of 514,257. The company has a market cap of $3.89 billion, a price-to-earnings ratio of -11.62, a price-to-earnings-growth ratio of 2.55 and a beta of 1.31. The business's 50 day moving average price is $106.59 and its 200 day moving average price is $86.79. The company has a current ratio of 3.56, a quick ratio of 2.99 and a debt-to-equity ratio of 2.65. Marriott Vacations Worldwide has a 12 month low of $44.58 and a 12 month high of $131.34.

Marriott Vacations Worldwide Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th were paid a dividend of $0.80 per share. The ex-dividend date of this dividend was Wednesday, September 16th. This represents a $3.20 annualized dividend and a yield of 2.8%. Marriott Vacations Worldwide's dividend payout ratio (DPR) is currently -32.85%.

Analysts Set New Price Targets

Several research firms recently commented on VAC. Morgan Stanley cut their target price on shares of Marriott Vacations Worldwide from $65.00 to $63.00 and set an "underweight" rating for the company in a research note on Thursday, October 22nd. Zacks Research cut Marriott Vacations Worldwide from a "strong-buy" rating to a "hold" rating in a report on Thursday, October 22nd. Barclays increased their target price on Marriott Vacations Worldwide from $94.00 to $140.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. The Goldman Sachs Group reaffirmed a "buy" rating and set a $132.00 price target on shares of Marriott Vacations Worldwide in a research note on Friday, August 7th. Finally, Wall Street Zen upgraded Marriott Vacations Worldwide from a "hold" rating to a "buy" rating in a research report on Saturday, August 15th. Eight analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $108.00.

Insider Activity at Marriott Vacations Worldwide

In other news, insider Kathleen A. Pighini sold 2,500 shares of Marriott Vacations Worldwide stock in a transaction on Monday, August 17th. The shares were sold at an average price of $120.00, for a total value of $300,000.00. Following the completion of the sale, the insider owned 10,821 shares in the company, valued at $1,298,520. The trade was a 18.77% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Christian Asmar sold 750,000 shares of the business's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $111.49, for a total transaction of $83,617,500.00. Following the transaction, the director owned 3,380,818 shares in the company, valued at $376,927,398.82. The trade was a 18.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 13.30% of the stock is currently owned by insiders.

Marriott Vacations Worldwide Company Profile

Marriott Vacations Worldwide Corporation NYSE: VAC is a global vacation ownership and leisure travel company. It develops, markets, sells, and manages vacation ownership interests, which provide customers with access to accommodations and resort experiences through points-based and deeded ownership programs. The company also operates related vacation exchange, rental, resort management, and travel businesses.

Its portfolio includes vacation ownership and related offerings under brands such as Marriott Vacation Club, Sheraton Vacation Club, Westin Vacation Club, Grand Residences by Marriott, and Aqua-Aston.

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