Marriott Vacations Worldwide (NYSE:VAC) Issues Earnings Results

Marriott Vacations Worldwide (NYSE:VAC) announced its quarterly earnings data on Thursday. The company reported $2.31 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.97 by $0.34, FiscalAI reports. Marriott Vacations Worldwide had a positive return on equity of 11.37% and a negative net margin of 6.72%.The business had revenue of $1.32 billion during the quarter, compared to analysts’ expectations of $1.30 billion. During the same quarter in the previous year, the business earned $1.96 earnings per share. The firm’s quarterly revenue was up 5.9% compared to the same quarter last year. Marriott Vacations Worldwide updated its FY 2026 guidance to 8.250-9.050 EPS.

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

• Q2 contract sales rose 22% year over year to $545 million, while VPG increased 23% to $4,477 and adjusted EBITDA grew 6% to $215 million.
• Management raised full-year adjusted EBITDA guidance by $50 million to $805 million–$830 million and increased adjusted free cash flow guidance to $410 million–$460 million, citing strong sales momentum and expected second-half margin improvement.
• New commercial initiatives—including tour logistics, enhanced owner loyalty tiers, Premier Vacations, and Inner Circle events—are improving owner engagement, transaction sizes, and tour flow; management expects these programs to support growth into 2027 and beyond.
• Net corporate debt ended the quarter at $3.1 billion, or approximately 4.0 times leverage. The company plans to prioritize debt reduction while retaining flexibility for dividends and opportunistic share repurchases, and expects to generate $200 million from non-core asset sales by the end of 2027.
• The sales reserve increased to 13.4% of contract sales, reflecting higher financed purchase volume, while $15 million of development profit was deferred because strong late-quarter sales remained within the rescission period.

Marriott Vacations Worldwide Stock Performance

Shares of NYSE VAC traded down $1.39 during trading on Friday, reaching $123.36. 1,107,290 shares of the company traded hands, compared to its average volume of 551,590. The firm has a 50 day simple moving average of $96.91 and a 200-day simple moving average of $77.19. The company has a quick ratio of 2.77, a current ratio of 3.30 and a debt-to-equity ratio of 2.80. The stock has a market capitalization of $4.24 billion, a PE ratio of -12.23, a P/E/G ratio of 2.30 and a beta of 1.23. Marriott Vacations Worldwide has a 52-week low of $44.58 and a 52-week high of $131.34.

Marriott Vacations Worldwide Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Wednesday, May 27th were issued a dividend of $0.80 per share. This represents a $3.20 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend was Wednesday, May 27th. Marriott Vacations Worldwide’s dividend payout ratio (DPR) is presently -31.71%.

Analyst Ratings Changes

A number of equities analysts recently issued reports on the stock. Weiss Ratings reiterated a “sell (d)” rating on shares of Marriott Vacations Worldwide in a research note on Friday, June 12th. Mizuho set a $103.00 price objective on shares of Marriott Vacations Worldwide in a research note on Wednesday, May 6th. Zacks Research cut shares of Marriott Vacations Worldwide from a “strong-buy” rating to a “hold” rating in a report on Tuesday, June 2nd. Morgan Stanley upped their target price on shares of Marriott Vacations Worldwide from $51.00 to $52.00 and gave the stock an “underweight” rating in a research note on Friday, July 17th. Finally, Barclays increased their price target on shares of Marriott Vacations Worldwide from $94.00 to $140.00 and gave the company an “overweight” rating in a report on Friday. Seven investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, Marriott Vacations Worldwide presently has a consensus rating of “Hold” and an average price target of $97.80.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in VAC. Captrust Financial Advisors grew its holdings in shares of Marriott Vacations Worldwide by 17.4% in the fourth quarter. Captrust Financial Advisors now owns 3,834 shares of the company’s stock worth $221,000 after acquiring an additional 568 shares during the period. Janney Montgomery Scott LLC bought a new position in Marriott Vacations Worldwide in the fourth quarter valued at about $229,000. Mercer Global Advisors Inc. ADV bought a new position in Marriott Vacations Worldwide in the third quarter valued at about $227,000. Capital World Investors purchased a new position in Marriott Vacations Worldwide in the third quarter worth about $226,000. Finally, Tower Research Capital LLC TRC boosted its position in Marriott Vacations Worldwide by 83.2% in the second quarter. Tower Research Capital LLC TRC now owns 3,140 shares of the company’s stock worth $227,000 after purchasing an additional 1,426 shares during the last quarter. 89.52% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Marriott Vacations Worldwide

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

• Positive Sentiment: Q2 results exceeded expectations. Marriott Vacations reported $1.32 billion in revenue, up 5.9% year over year and above the $1.30 billion consensus estimate. Adjusted EPS of $2.31 surpassed expectations of approximately $1.97-$1.98 and increased from $1.96 a year earlier. Marriott Vacations Worldwide Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Demand indicators were particularly strong. Contract sales rose 22% year over year to $545 million, while net income attributable to common shareholders increased to $77 million from $69 million. Diluted EPS rose to $2.12 from $1.77. Marriott Vacations Worldwide Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Management raised its 2026 earnings outlook. Full-year EPS guidance is now $8.25-$9.05, above the roughly $7.49 consensus cited in company coverage and the $7.32 estimate referenced in other reports. The higher outlook suggests management expects continued operating momentum. Marriott Vacations Raises 2026 Outlook on Strong Q2
• Neutral Sentiment: Momentum screens remain favorable. Zacks identified VAC as a company with strong recent price momentum that still appears reasonably valued relative to its growth profile, although the stock is trading near its 12-month high after a substantial advance. Despite Fast-paced Momentum, Marriott Vacations Worldwide Is Still a Bargain Stock
• Negative Sentiment: Wells Fargo remains underweight despite raising its target. The firm lifted its price target from $68 to $101, but that target still implied about 19% downside from the recently quoted share price. The rating reinforces concerns that much of the strong earnings outlook may already be reflected in VAC’s valuation. Wells Fargo Price Target Update

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.