Marriott Vacations Worldwide (NYSE:VAC) Announces Quarterly Earnings Results, Beats Estimates By $0.24 EPS

Key Points

• Marriott Vacations Worldwide reported quarterly earnings of $1.96 per share, exceeding expectations by $0.20, and updated its fiscal year 2025 guidance to between 6.400 and 7.100 EPS.
• The company's stock increased by 1.4% following the earnings report, with shares trading at $74.55 and a market capitalization of $2.57 billion.
• Marriott declared a quarterly dividend of $0.79, resulting in an annualized yield of 4.2%, while maintaining a healthy dividend payout ratio of 53.92%.

Marriott Vacations Worldwide (NYSE:VAC - Get Free Report) issued its quarterly earnings data on Monday. The company reported $1.96 EPS for the quarter, beating the consensus estimate of $1.72 by $0.24, Zacks reports. The company had revenue of $1.25 billion during the quarter, compared to analysts' expectations of $1.22 billion. Marriott Vacations Worldwide had a net margin of 4.57% and a return on equity of 10.43%. Marriott Vacations Worldwide's revenue for the quarter was up 9.3% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.10 earnings per share. Marriott Vacations Worldwide updated its FY 2025 guidance to 6.400-7.100 EPS.

Marriott Vacations Worldwide Price Performance

Shares of NYSE:VAC opened at $74.55 on Tuesday. The firm's 50 day moving average price is $74.18 and its 200-day moving average price is $71.43. Marriott Vacations Worldwide has a twelve month low of $49.22 and a twelve month high of $100.32. The company has a quick ratio of 2.58, a current ratio of 3.16 and a debt-to-equity ratio of 2.18. The stock has a market capitalization of $2.57 billion, a PE ratio of 12.72, a price-to-earnings-growth ratio of 1.62 and a beta of 1.49.

Marriott Vacations Worldwide Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, June 6th. Shareholders of record on Friday, May 23rd were paid a dividend of $0.79 per share. The ex-dividend date was Friday, May 23rd. This represents a $3.16 annualized dividend and a yield of 4.2%. Marriott Vacations Worldwide's dividend payout ratio is currently 53.92%.

Insider Buying and Selling at Marriott Vacations Worldwide

In other news, Director Christian Asmar bought 412,449 shares of Marriott Vacations Worldwide stock in a transaction that occurred on Tuesday, June 17th. The stock was bought at an average cost of $67.61 per share, with a total value of $27,885,676.89. Following the acquisition, the director owned 3,708,433 shares of the company's stock, valued at $250,727,155.13. The trade was a 12.51% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 1.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On Marriott Vacations Worldwide

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Marriott Vacations Worldwide by 4.7% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 100,636 shares of the company's stock valued at $6,465,000 after buying an additional 4,497 shares in the last quarter. Empowered Funds LLC grew its holdings in Marriott Vacations Worldwide by 147.9% during the 1st quarter. Empowered Funds LLC now owns 8,487 shares of the company's stock valued at $545,000 after buying an additional 5,064 shares in the last quarter. Finally, Goldman Sachs Group Inc. grew its holdings in Marriott Vacations Worldwide by 18.2% during the 1st quarter. Goldman Sachs Group Inc. now owns 140,662 shares of the company's stock valued at $9,036,000 after buying an additional 21,623 shares in the last quarter. 89.52% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several brokerages have issued reports on VAC. Mizuho dropped their target price on shares of Marriott Vacations Worldwide from $112.00 to $105.00 and set an "outperform" rating for the company in a research report on Friday, May 9th. Barclays dropped their target price on shares of Marriott Vacations Worldwide from $97.00 to $88.00 and set an "overweight" rating for the company in a research report on Monday, May 12th. The Goldman Sachs Group boosted their price objective on shares of Marriott Vacations Worldwide from $48.00 to $55.00 and gave the stock a "sell" rating in a report on Friday, May 9th. Finally, Morgan Stanley restated an "underweight" rating on shares of Marriott Vacations Worldwide in a report on Tuesday, July 15th. Two equities research analysts have rated the stock with a sell rating, one has issued a hold rating and five have issued a buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $92.57.

About Marriott Vacations Worldwide

Marriott Vacations Worldwide Corporation, a vacation company, develops, markets, sells, and manages vacation ownership and related businesses, products, and services in the United States and internationally. It operates through two segments, Vacation Ownership and Exchange & Third-Party Management.