Zacks Research Issues Pessimistic Estimate for VAC Earnings

Key Points

• Zacks Research lowered its Q2 2027 EPS estimate for Marriott Vacations Worldwide to $2.22 from $2.26 and maintained a Hold rating on the stock. The firm also trimmed estimates for several later quarters and FY2028.
• The company’s most recent earnings missed expectations, reporting $1.24 EPS versus the $1.67 consensus, even though revenue came in above estimates at $1.26 billion. Marriott Vacations also guided FY2026 EPS to a range of 7.05 to 7.80.
• Analyst sentiment remains mixed: several firms recently upgraded the stock and the average analyst target is $83.70, but Zacks’ downgrade and softer forecasts could weigh on near-term sentiment. The shares were trading at $86.75, near their 52-week high of $91.61.

Marriott Vacations Worldwide Corporation (NYSE:VAC - Free Report) - Investment analysts at Zacks Research decreased their Q2 2027 earnings per share estimates for Marriott Vacations Worldwide in a report issued on Wednesday, June 3rd. Zacks Research analyst Team now forecasts that the company will earn $2.22 per share for the quarter, down from their previous estimate of $2.26. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Marriott Vacations Worldwide's current full-year earnings is $7.26 per share. Zacks Research also issued estimates for Marriott Vacations Worldwide's Q3 2027 earnings at $1.89 EPS, Q4 2027 earnings at $1.93 EPS and FY2028 earnings at $7.96 EPS.

Marriott Vacations Worldwide (NYSE:VAC - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported $1.24 EPS for the quarter, missing the consensus estimate of $1.67 by ($0.43). The business had revenue of $1.26 billion for the quarter, compared to the consensus estimate of $1.20 billion. Marriott Vacations Worldwide had a positive return on equity of 11.37% and a negative net margin of 6.72%.Marriott Vacations Worldwide's revenue for the quarter was up 4.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.66 EPS. Marriott Vacations Worldwide has set its FY 2026 guidance at 7.050-7.800 EPS.

Other analysts have also recently issued research reports about the company. The Goldman Sachs Group upgraded Marriott Vacations Worldwide from a "sell" rating to a "buy" rating and set a $100.00 target price on the stock in a report on Monday. Stifel Nicolaus lifted their target price on Marriott Vacations Worldwide from $77.00 to $85.00 and gave the company a "buy" rating in a research note on Thursday, February 26th. Jefferies Financial Group raised Marriott Vacations Worldwide from a "hold" rating to a "buy" rating and lifted their target price for the company from $52.00 to $105.00 in a research note on Monday, March 2nd. Citizens Jmp cut Marriott Vacations Worldwide from an "outperform" rating to a "market perform" rating in a research note on Monday, March 9th. Finally, Mizuho set a $103.00 target price on Marriott Vacations Worldwide in a research note on Wednesday, May 6th. Seven investment analysts have rated the stock with a Buy rating, two have given a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $83.70.

Marriott Vacations Worldwide Price Performance

Shares of VAC stock opened at $86.75 on Friday. The stock's fifty day moving average is $73.57 and its 200-day moving average is $64.16. The company has a debt-to-equity ratio of 2.80, a quick ratio of 2.77 and a current ratio of 3.30. The stock has a market capitalization of $2.98 billion, a PE ratio of -8.60, a PEG ratio of 1.95 and a beta of 1.25. Marriott Vacations Worldwide has a 52 week low of $44.58 and a 52 week high of $91.61.

Marriott Vacations Worldwide Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Wednesday, May 27th will be given a $0.80 dividend. This represents a $3.20 annualized dividend and a dividend yield of 3.7%. The ex-dividend date is Wednesday, May 27th. Marriott Vacations Worldwide's dividend payout ratio (DPR) is currently -31.71%.

Insider Buying and Selling

In other Marriott Vacations Worldwide news, insider Michael Flaskey acquired 14,862 shares of the company's stock in a transaction that occurred on Tuesday, March 10th. The shares were acquired at an average price of $67.26 per share, with a total value of $999,618.12. Following the purchase, the insider owned 14,862 shares of the company's stock, valued at $999,618.12. This represents a ∞ increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Insiders own 13.30% of the company's stock.

Institutional Trading of Marriott Vacations Worldwide

Hedge funds have recently added to or reduced their stakes in the business. Algert Global LLC raised its stake in Marriott Vacations Worldwide by 43.2% during the 3rd quarter. Algert Global LLC now owns 105,332 shares of the company's stock worth $7,011,000 after buying an additional 31,770 shares during the period. LSV Asset Management raised its stake in Marriott Vacations Worldwide by 7.9% during the 4th quarter. LSV Asset Management now owns 204,657 shares of the company's stock worth $11,807,000 after buying an additional 15,025 shares during the period. Vanguard Group Inc. raised its stake in Marriott Vacations Worldwide by 7.4% during the 4th quarter. Vanguard Group Inc. now owns 3,392,787 shares of the company's stock worth $195,730,000 after buying an additional 234,105 shares during the period. Dimensional Fund Advisors LP raised its stake in Marriott Vacations Worldwide by 2.9% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,950,309 shares of the company's stock worth $129,820,000 after buying an additional 54,285 shares during the period. Finally, Dynamic Technology Lab Private Ltd acquired a new stake in Marriott Vacations Worldwide during the 3rd quarter worth $1,284,000. Institutional investors and hedge funds own 89.52% of the company's stock.

Marriott Vacations Worldwide News Roundup

Here are the key news stories impacting Marriott Vacations Worldwide this week:

• Positive Sentiment: VAC has been up since its last earnings report, suggesting investors are still rewarding the company’s recent operating performance and outlook. Marriott Vacations Worldwide (VAC) Up 9.3% Since Last Earnings Report: Can It Continue?
• Neutral Sentiment: The company was mentioned in a travel promotion piece about earning bonus points on Vacations by Marriott packages, which is unlikely to materially affect the stock. Earn 20,000 bonus points on Vacations by Marriott packages for travel through December
• Negative Sentiment: Zacks Research cut its earnings forecasts for multiple future periods, including Q1 2027, Q2 2027, Q3 2027, Q4 2027, FY2027 and FY2028, signaling softer profit expectations ahead. Marriott Vacations Worldwide Corporation analyst estimate updates
• Negative Sentiment: Zacks also downgraded Marriott Vacations Worldwide from Strong Buy to Hold, which can weigh on sentiment and limit near-term upside. Zacks.com downgrade notice

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.

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