Marriott Vacations Worldwide (NYSE:VAC) Issues Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Marriott Vacations Worldwide (NYSE:VAC) announced its earnings results on Wednesday. The company reported $2.64 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.57 by $0.07, FiscalAI reports. The company had revenue of $1.37 billion for the quarter, compared to analyst estimates of $1.42 billion. Marriott Vacations Worldwide had a positive return on equity of 12.27% and a negative net margin of 6.47%. The firm’s quarterly revenue was up 8.2% compared to the same quarter last year. During the same quarter in the previous 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 3.7%

VAC stock traded down $4.39 during midday trading on Wednesday, hitting $114.20. The company’s stock had a trading volume of 676,152 shares, compared to its average volume of 514,711. The company has a quick ratio of 2.99, a current ratio of 3.56 and a debt-to-equity ratio of 2.65. Marriott Vacations Worldwide has a 52-week low of $44.58 and a 52-week high of $131.34. The firm has a market capitalization of $3.93 billion, a P/E ratio of -11.72, a PEG ratio of 2.55 and a beta of 1.31. The firm has a 50-day simple moving average of $106.59 and a 200-day simple moving average of $86.79.

Marriott Vacations Worldwide Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th were given a $0.80 dividend. This represents a $3.20 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend was Wednesday, September 16th. Marriott Vacations Worldwide’s dividend payout ratio (DPR) is currently -32.85%.

Insider Buying and Selling at Marriott Vacations Worldwide

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

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the company. The Goldman Sachs Group reiterated a “buy” rating and issued a $132.00 price objective on shares of Marriott Vacations Worldwide in a report on Friday, August 7th. JPMorgan Chase & Co. initiated coverage on Marriott Vacations Worldwide in a research note on Thursday, October 8th. They set an “overweight” rating and a $125.00 target price on the stock. Wells Fargo & Company lowered their target price on Marriott Vacations Worldwide from $101.00 to $100.00 and set an “underweight” rating for the company in a report on Monday, October 19th. Morgan Stanley lowered their target price on Marriott Vacations Worldwide from $65.00 to $63.00 and set an “underweight” rating for the company in a report on Thursday, October 22nd. Finally, Wall Street Zen raised Marriott Vacations Worldwide from a “hold” rating to a “buy” rating in a research report on Saturday, August 15th. Eight analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, Marriott Vacations Worldwide currently has a consensus rating of “Hold” and a consensus target price of $108.00.

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.