Marriott Vacations (VAC) Q2 Earnings & Revenues Lag Estimates

Marriott Vacations Worldwide Corporation VAC reported dismal second-quarter 2024 results, with earnings and revenues missing their respective Zacks Consensus Estimate. The top and the bottom line declined on a year-over-year basis.VAC witnessed a mixed performance in the quarter. Rentals exceeded expectations, but lower VPGs negatively impacted contract sales. Travel demand remains strong, with resorts achieving 90% occupancy, a 5% increase in tours and flat owner VPGs compared with last year’s tally.However, first-time buyer VPGs declined year over year. Recovery in Maui is slower than anticipated. Owing to this, the company lowered its contract sales guidance for 2024.Earnings & Revenue DiscussionAdjusted earnings per share (EPS) of $1.10 missed the Zacks Consensus Estimate of $1.99 by 44.7%. In the year-ago quarter, it reported an adjusted EPS of $2.19.Marriott Vacations Worldwide Corporation Price, Consensus and EPS Surprise  Marriott Vacations Worldwide Corporation price-consensus-eps-surprise-chart | Marriott Vacations Worldwide Corporation Quote Quarterly revenues of $1,140 million missed the consensus mark of $1,217 million by 6.3%. The top line declined 3% on a year-over-year basis.Segmental PerformancesVacation Ownership: The segment’s revenues totaled $1.08 billion, down 3.1% from $1.1 billion reported in the prior-year quarter.VAC’s Vacation Ownership contract sales inched down 1% year over year to $449 million. The downside was primarily caused by a 6% decline in VPG and the impact of the Maui wildfires. Excluding Maui, contract sales rose 3% year over year.Adjusted EBITDA came in at $180 million, down 26% from $245 million reported in the year-ago quarter.Exchange & Third-Party Management: Segmental revenues of $58 million decreased 10.8% year over year. Revenues, excluding cost reimbursements, declined 9% year over year.The interval of international active members dropped 2% year over year to 1.5 million. Average revenues per member declined 3% on a year-over-year basis. Adjusted EBITDA was $25 million, down 22% year over year.Corporate and Other ResultsGeneral and administrative costs totaled $54 million, down 15% year over year. Our estimate was $74.5 million.Expenses & EBITDATotal expenses increased 3.5% year over year to $1.04 billion from $1 billion reported in the year-ago quarter. We expected the metric to be $1.06 billion.Adjusted EBITDA amounted to $157 million, down 29% from $222 million reported in the prior-year quarter. Our model predicted the metric to be $204.3 million.Balance SheetAs of Jun 30, the company’s cash and cash equivalents were $206 million compared with $248 million as of Dec 31, 2023.At the end of the second quarter, the company had $3.1 billion of corporate debt and $2.1 billion of non-recourse debt related to its securitized notes receivable.Updated 2024 OutlookFor 2024, management anticipates contract sales in the range of $1,790-$1,825 million, down from the previous expectation of $1,880-$1,930 million. Adjusted free cash flow is projected in the range of $300-$340 million, down from the prior projection of $400-$450 million. Adjusted EBITDA is estimated to be between $685 million and $715 million, down from the previous anticipation of $760 million and $800 million.Adjusted EPS are expected to be between $5.90 and $6.45, down from the prior estimate of $7.45 and $8.16.Zacks RankMarriott Vacations currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.Recent Consumer Discretionary ReleasesNorwegian Cruise Line Holdings Ltd. (NCLH) reported solid second-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.NCLH continues to build strong momentum, having exceeded its guidance metrics in each quarter of the year. Robust market demand added to the upside. It remains committed to improving efficiencies, reducing costs and strategically restoring margins. Given the substantial progress made so far and current demand expectations, the company raised its 2024 full-year guidance. It projects an adjusted earnings per share (EPS) growth of 120% from 2023 levels while keeping cost guidance flat relative to the prior year’s tally. Much optimism prevails on account of strong yield growth, disciplined cost management and the initiatives under the Charting the Course strategy.Mattel, Inc. (MAT) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top line missed the consensus estimate for the third straight quarter.The company experienced robust bottom-line performance, propelled mainly by significant gross margin expansion and growth in adjusted EBITDA. MAT is well positioned for the second half with new product innovation and increased retail support. The company is in a strong financial position to execute its strategy to expand its IP-driven toy business and expand entertainment offerings. For 2024, management continues to expect net sales to be comparable with the prior year’s levels at constant currency. It also anticipates 2024 adjusted EPS to be between $1.35 and $1.45 compared with $1.23 in 2023.Marriott International, Inc. MAR reported mixed second-quarter 2024 results, with adjusted earnings beating the Zacks Consensus Estimate and revenues missing the same. The bottom and top lines increased on a year-over-year basis.The quarterly results benefited from a solid increase in global travel demand, reflecting worldwide revenue per available room (RevPAR) growth. International RevPAR gained from solid contributions from Asia Pacific, excluding China. At the same time, U.S. & Canada RevPAR benefited from growth across all customer segments, reflecting average daily rate (ADR) and occupancy uptrend.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marriott International, Inc. (MAR): Free Stock Analysis Report Marriott Vacations Worldwide Corporation (VAC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks