Marriott Vacations Worldwide (NYSE:VAC) Issues Earnings Results

Marriott Vacations Worldwide (NYSE:VAC) posted its earnings results on Wednesday. The company reported $2.64 earnings per share for the quarter, topping the consensus estimate of $2.57 by $0.07, FiscalAI reports. The firm had revenue of $1.37 billion during the quarter, compared to the consensus estimate of $1.42 billion. Marriott Vacations Worldwide had a negative net margin of 6.47% and a positive return on equity of 12.27%. The company’s revenue was up 8.2% on a year-over-year basis. During the same quarter last year, the company earned $1.69 earnings per share.

Here are the key takeaways from Marriott Vacations Worldwide’s conference call:

• Third-quarter contract sales rose 29% to $565 million and adjusted EBITDA increased 27% to $216 million. Marriott Vacations raised the midpoint of its full-year guidance to $2.13 billion in contract sales and $820 million in adjusted EBITDA.
• Commercial initiatives drove VPG up 30% to $4,822, while marketing and sales costs fell to 48% of contract sales, a 600-basis-point improvement year over year. Management said owner engagement, upgraded loyalty tiers, and its sales-tour matching system are contributing, with further growth initiatives still scaling.
• Net corporate leverage declined to 3.6 times from 4.2 times at the start of the year, and the company expects $420 million of adjusted free cash flow for 2026. Management said it continues to prioritize debt reduction while retaining flexibility for shareholder returns.
• Hurricane Lowell is expected to reduce 2026 profits by $16 million, including an estimated $11 million in the fourth quarter, primarily because the Sheraton Kauaʻi Resort is expected to remain closed through year-end. The damage also delays the resort’s planned sale by a couple of quarters, though the company expects to sell it in 2027 and pursue an insurance claim.

Marriott Vacations Worldwide Stock Down 4.6%

Shares of VAC traded down $5.42 on Wednesday, reaching $113.17. The stock had a trading volume of 528,281 shares, compared to its average volume of 514,257. The company has a debt-to-equity ratio of 2.65, a quick ratio of 2.99 and a current ratio of 3.56. Marriott Vacations Worldwide has a 12-month low of $44.58 and a 12-month high of $131.34. The firm has a market capitalization of $3.89 billion, a price-to-earnings ratio of -11.62, a price-to-earnings-growth ratio of 2.55 and a beta of 1.31. The company has a 50-day simple moving average of $106.59 and a 200-day simple moving average of $86.79.

Marriott Vacations Worldwide Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th were paid a $0.80 dividend. This represents a $3.20 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date was Wednesday, September 16th. Marriott Vacations Worldwide’s dividend payout ratio (DPR) is presently -32.85%.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on VAC. Wall Street Zen upgraded shares of Marriott Vacations Worldwide from a “hold” rating to a “buy” rating in a research note on Saturday, August 15th. Susquehanna boosted their target price on shares of Marriott Vacations Worldwide from $110.00 to $115.00 and gave the company a “neutral” rating in a report on Thursday, October 15th. Barclays increased their target price on Marriott Vacations Worldwide from $94.00 to $140.00 and gave the stock an “overweight” rating in a research report on Friday, August 7th. Weiss Ratings raised Marriott Vacations Worldwide from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday. Finally, Zacks Research lowered Marriott Vacations Worldwide from a “strong-buy” rating to a “hold” rating in a report on Thursday, October 22nd. Eight investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Marriott Vacations Worldwide currently has a consensus rating of “Hold” and a consensus price target of $108.00.

Insider Buying and Selling at Marriott Vacations Worldwide

In other Marriott Vacations Worldwide news, Director Christian Asmar sold 750,000 shares of the stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $111.49, for a total value of $83,617,500.00. Following the completion of the transaction, the director owned 3,380,818 shares in the company, valued at approximately $376,927,398.82. This represents a 18.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Kathleen A. Pighini sold 2,500 shares of the firm’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $120.00, for a total value of $300,000.00. Following the transaction, the insider directly owned 10,821 shares of the company’s stock, valued at $1,298,520. This represents a 18.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 13.30% of the stock is owned by corporate insiders.

About Marriott Vacations Worldwide

Marriott Vacations Worldwide Corporation (NYSE:VAC) is a global vacation ownership and leisure travel company. It develops, markets, sells, and manages vacation ownership interests, which provide customers with access to accommodations and resort experiences through points-based and deeded ownership programs. The company also operates related vacation exchange, rental, resort management, and travel businesses.

Its portfolio includes vacation ownership and related offerings under brands such as Marriott Vacation Club, Sheraton Vacation Club, Westin Vacation Club, Grand Residences by Marriott, and Aqua-Aston.