Vacation ownership company Marriott Vacations (NYSE: VAC) will be announcing earnings results this Tuesday before market open. Here’s what to look for.
Marriott Vacations beat analysts’ revenue expectations last quarter, reporting revenues of $1.32 billion, flat year on year. It was a mixed quarter for the company, with full-year EBITDA guidance topping analysts’ expectations but a significant miss of analysts’ adjusted operating income estimates. It reported 1,507 guests, down 99.9% year on year.
Is Marriott Vacations a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Marriott Vacations’s revenue to be flat year on year, in line with its flat revenue from the same quarter last year.
The majority of analysts covering the company have 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 multiple times over the last two years.
Looking at Marriott Vacations’s peers in the consumer discretionary - travel and vacation providers segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Hilton Grand Vacations delivered year-on-year revenue growth of 11.9%, beating analysts’ expectations by 2%, and American Airlines reported revenues up 10.8%, topping estimates by 0.6%. Hilton Grand Vacations traded up 5.9% following the results while American Airlines was also up 5.2%.
Read our full analysis of Hilton Grand Vacations’s results here and American Airlines’s results here.
There has been positive sentiment among investors in the consumer discretionary - travel and vacation providers segment, with share prices up 7% on average over the last month. Marriott Vacations is up 7.1% during the same time and is heading into earnings with an average analyst price target of $79.20 (compared to the current share price of $72.75).
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