Marriott Vacations Worldwide (NYSE:VAC) Issues Quarterly Earnings Results, Misses Estimates By $0.43 EPS

Key Points

• Missed EPS: Marriott reported Q1 EPS of $1.24 versus $1.67 expected (a $0.43 miss) while revenue beat at $1.26B, but Q1 adjusted EBITDA fell 16% to $161M and contract sales were down 2%.
• Stronger cash and balance-sheet moves: Adjusted free cash flow rose to $114M, the company closed a $460M securitization at a 4.86% blended rate, plans $200–$250M of asset dispositions by end‑2027, is targeting leverage below 4x, and updated FY2026 EPS guidance to 7.050–7.800.
• Management completed a rapid leadership overhaul and is rolling out commercial initiatives (expanded loyalty tiers, new packages and tour/logistics changes); April momentum (+8% contract sales YoY) led the company to raise full‑year contract sales guidance to +3%–7%.

Marriott Vacations Worldwide (NYSE:VAC - Get Free Report) announced its earnings results on Tuesday. The company reported $1.24 earnings per share for the quarter, missing the consensus estimate of $1.67 by ($0.43), FiscalAI reports. Marriott Vacations Worldwide had a positive return on equity of 11.77% and a negative net margin of 6.12%.The business had revenue of $1.26 billion for the quarter, compared to analysts' expectations of $1.20 billion. During the same quarter last year, the firm earned $1.66 earnings per share. The firm's quarterly revenue was up 4.8% compared to the same quarter last year. Marriott Vacations Worldwide updated its FY 2026 guidance to 7.050-7.800 EPS.

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

• Management completed a rapid leadership overhaul (hiring Mike Flaskey as President & COO, a new Chief Sales & Marketing Officer and frontline sales hires) and finished planned workforce reductions, actions the company says are already improving operational execution.
• Q1 adjusted EBITDA fell 16% to $161 million and contract sales declined 2% to $411 million, with tours down 3% and marketing/product costs rising, reflecting a transitional quarter with higher short-term expenses.
• Adjusted free cash flow was $114 million (up $74M), the company closed a $460M securitization at a 4.86% blended rate, completed the Westin Cancun sale, and reiterated plans to generate $200–$250M from asset dispositions by end-2027 while targeting leverage below 4x.
• April momentum was strong—contract sales rose 8% YoY (North America +11%)—leading the company to raise full-year contract sales guidance to +3%–7% while reaffirming EBITDA guidance for the year.
• New commercial initiatives (expanded owner loyalty tiers, "Dream Vacation Packages," the June "Inner Circle" experiential events, data-driven tour logistics and compensation alignment) are being rolled out to drive higher tours, VPGs and longer-term revenue and EBITDA growth.

Marriott Vacations Worldwide Stock Performance

Shares of VAC stock traded up $1.00 on Tuesday, hitting $71.21. The company had a trading volume of 268,198 shares, compared to its average volume of 577,366. The firm has a market cap of $2.44 billion, a P/E ratio of -7.68, a price-to-earnings-growth ratio of 1.72 and a beta of 1.20. The company has a 50-day moving average price of $68.17 and a 200-day moving average price of $61.49. The company has a quick ratio of 2.94, a current ratio of 3.48 and a debt-to-equity ratio of 2.85. Marriott Vacations Worldwide has a twelve month low of $44.58 and a twelve month high of $86.33.

Marriott Vacations Worldwide Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, March 18th. Stockholders of record on Wednesday, March 4th were issued a $0.80 dividend. This represents a $3.20 annualized dividend and a dividend yield of 4.5%. The ex-dividend date of this dividend was Wednesday, March 4th. Marriott Vacations Worldwide's payout ratio is -34.52%.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on VAC shares. Stifel Nicolaus boosted their target price on Marriott Vacations Worldwide from $77.00 to $85.00 and gave the stock a "buy" rating in a research note on Thursday, February 26th. Zacks Research upgraded Marriott Vacations Worldwide from a "strong sell" rating to a "hold" rating in a research note on Wednesday, February 18th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $92.00 price target on shares of Marriott Vacations Worldwide in a research note on Thursday. Wells Fargo & Company boosted their price target on Marriott Vacations Worldwide from $46.00 to $58.00 and gave the company an "underweight" rating in a research note on Friday, February 27th. Finally, Jefferies Financial Group upgraded Marriott Vacations Worldwide from a "hold" rating to a "buy" rating and boosted their price target for the company from $52.00 to $105.00 in a research note on Monday, March 2nd. Six analysts have rated the stock with a Buy rating, two have issued a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $75.30.

Insider Activity

In related news, insider Michael Flaskey acquired 14,862 shares of the firm's stock in a transaction dated Tuesday, March 10th. The stock was acquired at an average price of $67.26 per share, with a total value of $999,618.12. Following the acquisition, the insider directly owned 14,862 shares in the company, valued at $999,618.12. This represents a ∞ increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 13.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Marriott Vacations Worldwide

Several institutional investors and hedge funds have recently modified their holdings of the stock. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Marriott Vacations Worldwide by 11.0% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 705,629 shares of the company's stock valued at $46,967,000 after buying an additional 69,652 shares during the period. Goldman Sachs Group Inc. lifted its holdings in shares of Marriott Vacations Worldwide by 41.4% in the 4th quarter. Goldman Sachs Group Inc. now owns 399,668 shares of the company's stock valued at $23,057,000 after buying an additional 117,030 shares during the period. New South Capital Management Inc. lifted its holdings in shares of Marriott Vacations Worldwide by 15.1% in the 4th quarter. New South Capital Management Inc. now owns 382,869 shares of the company's stock valued at $22,088,000 after buying an additional 50,148 shares during the period. Charles Schwab Investment Management Inc. lifted its holdings in shares of Marriott Vacations Worldwide by 14.1% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 356,579 shares of the company's stock valued at $20,571,000 after buying an additional 44,159 shares during the period. Finally, AQR Capital Management LLC lifted its holdings in shares of Marriott Vacations Worldwide by 157.8% in the 4th quarter. AQR Capital Management LLC now owns 351,552 shares of the company's stock valued at $20,281,000 after buying an additional 215,202 shares during the period. Institutional investors and hedge funds own 89.52% of the company's stock.

About Marriott Vacations Worldwide

Marriott Vacations Worldwide Corporation, headquartered in Orlando, Florida, specializes in the development, marketing and management of vacation ownership resorts and related products. Originally launched as a division of Marriott International in 1984, the company became a separate publicly traded entity in 2011. Since then, it has expanded its offerings through both organic growth and strategic acquisitions, establishing itself as a leading provider in the global timeshare industry.

The company's core business activities include selling vacation ownership interests, managing a growing portfolio of branded resorts and operating a loyalty program that allows members to exchange or use points at affiliated properties.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.