Marriott Vacations Q4 Earnings & Revenues Beat Estimates, Stock Up

Marriott Vacations Worldwide Corporation VAC reported fourth-quarter 2024 results, with both earnings and revenues beating the respective Zacks Consensus Estimate. Following the results, the company’s shares increased 2% in the after-hour trading session.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company’s top line benefited from solid contributions from the Vacation Ownership contract sales, driven by increased tours. Total expenses were higher in the quarter than the prior-year level, hurting the company’s bottom line.VAC’s Earnings & Revenue DiscussionAdjusted earnings per share (EPS) of $1.86 surpassed the Zacks Consensus Estimate of $1.51 by 23.2%. In the year-ago quarter, it reported an adjusted EPS of $1.88.Quarterly revenues of $1,327 million also surpassed the consensus mark of $1,245 million by 6.6%. The top line increased 11% on a year-over-year basis.Marriott Vacations Worldwide Corporation Price, Consensus and EPS Surprise Marriott Vacations Worldwide Corporation price-consensus-eps-surprise-chart | Marriott Vacations Worldwide Corporation QuoteSegmental Performances of Marriott VacationsVacation Ownership: The segment’s revenues totaled $1.27 billion, up from $1.13 billion reported in the prior-year quarter.Vacation Ownership total contract sales rose 6.7% year over year to $400 million.The segment’s adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $221 million, down 7% from $236 million in the year-ago quarter. Adjusted EBITDA margin contracted 550 basis points (bps) year over year to 27%.Exchange & Third-Party Management: Segmental revenues of $52 million declined year over year from $62 million. Revenues, excluding cost reimbursements, declined 13% year over year to $49 million.Total active interval international members were down 1% year over year to 1.55 million. Average revenue per member declined 2% on a year-over-year basis to $35.36.Adjusted EBITDA was $22 million, down 27% year over year. The segment’s adjusted EBITDA margin contracted 800 bps year over year to 44.2%.VAC’s Corporate & Other ResultsGeneral and administrative expenses totaled $64 million, down year over year from $84 million. Our estimate was $67 million.Total expenses increased 12.1% year over year to $1.22 billion from $1.09 billion reported in the year-ago quarter. We expected the metric to be $1.1 billion.Adjusted EBITDA amounted to $185 million, down 0.5% year over year from $186 million. Our model predicted the metric to be $177 million.Balance Sheet of VACAs of Dec. 31, Marriott Vacations’ cash and cash equivalents were $197 million compared with $248 million as of Dec. 31, 2023.At the end of the fourth quarter, the company had $3.1 billion of corporate debt and $2.1 billion of non-recourse debt related to its securitized notes receivable.2025 Outlook of Marriott VacationsManagement anticipates contract sales to be in the range of $1.850-$1.925 billion compared with $1.813 billion in 2024.Adjusted EBITDA is now expected to be between $750 million and $780 million. This compares with $727 million reported in 2024.Adjusted EPS is anticipated to be between $6.30 and $7.00. This compares with adjusted EPS of $6.56 in 2024.Adjusted free cash flow is expected to be in the range of $290-$350 million.VAC’s Zacks Rank & Recent Consumer Discretionary ReleasesMarriott Vacations currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Royal Caribbean Cruises Ltd. RCL posted mixed fourth-quarter 2024 results, with adjusted earnings beating the Zacks Consensus Estimate and revenues missing the same. Notably, both top and bottom lines increased on a year-over-year basis.The company’s performance during the quarter was driven by stronger pricing on close-in demand and continued strength in onboard revenues. RCL’s diversified fleet offerings, accompanied by its commercial and vacation experiences, are witnessing robust demand trends amid an improving global market backdrop. Thanks to these tailwinds, RCL could achieve its Trifecta goals before the schedule, pointing out the benefits it is realizing from the current improving scenario.Adtalem Global Education Inc. ATGE posted better-than-expected results in second-quarter fiscal 2025. Earnings and revenues surpassed the respective Zacks Consensus Estimate and increased year over year, driven by strong enrollment growth and strategic initiatives.Adtalem's operational excellence strategy, Growth with Purpose, has driven six consecutive quarters of enrollment growth while supporting its mission to develop skilled healthcare professionals. Furthermore, strong demand at Chamberlain University and Walden University drove results. ATGE now expects fiscal 2025 adjusted earnings to be in the band of $6.10-$6.30 per share compared with the earlier prediction of $5.75-$5.95.Las Vegas Sands Corp. LVS reported fourth-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and net revenues beating the same. Both metrics declined on a year-over-year basis.The company reported solid financial and operational performance at Marina Bay Sands, Singapore and continued recovery in the Macao market. LVS continues to execute strategic objectives and remains optimistic about achieving industry-leading growth in both Macao and Singapore through its ongoing capital investment initiatives. It is optimistic about the introduction of new suite offerings, enhanced service levels and increased tourism spending in Asia.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report Las Vegas Sands Corp. (LVS): Free Stock Analysis Report Marriott Vacations Worldwide Corporation (VAC): Free Stock Analysis Report Adtalem Global Education Inc. (ATGE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks