Vacation ownership company Marriott Vacations (NYSE: VAC) will be announcing earnings results tomorrow after market hours. Here’s what you need to know.
Marriott Vacations beat analysts’ revenue expectations by 6.7% last quarter, reporting revenues of $1.33 billion, up 11.1% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EPS estimates but a miss of analysts’ adjusted operating income estimates. It reported 1.55 million guests, down 1.2% year on year.
Is Marriott Vacations a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Marriott Vacations’s revenue to grow 1.3% year on year to $1.21 billion, in line with the 2.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.43 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Marriott Vacations has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Marriott Vacations’s peers in the travel and vacation providers segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Hyatt Hotels posted flat year-on-year revenue, beating analysts’ expectations by 2%, and Playa Hotels & Resorts reported a revenue decline of 11.1%, in line with consensus estimates. Hyatt Hotels traded up 9.2% following the results.
Read our full analysis of Hyatt Hotels’s results here and Playa Hotels & Resorts’s results here.
There has been positive sentiment among investors in the travel and vacation providers segment, with share prices up 9.2% on average over the last month. Marriott Vacations is up 10% during the same time and is heading into earnings with an average analyst price target of $89.30 (compared to the current share price of $58.48).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
