In This Article:
A month has gone by since the last earnings report for Marriott Vacations Worldwide (VAC). Shares have lost about 5.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Marriott due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Marriott Vacations Q1 Earnings Miss Estimates
Marriott Vacations reported first-quarter 2020 financial results wherein earnings missed the Zacks Consensus Estimate but revenues beat the same. The company reported adjusted earnings per share of $1.71 per share, comparing unfavorably with the consensus estimate of $2.15. Revenues dipped 2.3% year over year to $1,010 million but surpassed the consensus estimate of $996 million.
Segmental Performances
Vacation Ownership: Consolidated Vacation Ownership contract sales totaled $908 million, up 0.3% year over year on a combined basis. On a combined basis, the segment’s adjusted EBITDA decreased 15% year over year to $147 million in the first quarter.
Exchange & Third-Party Management: The segment’s revenues totaled $107 million in the quarter, down from year-ago quarter’s figure of $124 million. Total Interval Network active members were 1.6 million at the end of the quarter and average revenue per member was $41.3. The segment’s adjusted EBITDA decreased 24% to $41 million.
Corporate and Other results
The segment, which primarily consists of general and administrative costs, decreased $10 million in first-quarter 2020 due to synergy savings and decline in compensation related expenses. This was marginally overshadowed by normal inflationary cost increases.
Expenses & EBITDA
Total expenses in the quarter came in at $1,060 million, compared with $943 million in the prior-year quarter. The company’s adjusted EBITDA declined to $138 million from $166 million at the end of Mar 31, 2019.
Balance Sheet
Cash and cash equivalents, as of Mar 31, 2020, was $651 million. Inventory was $846 million. The company had $4.7 billion in debt outstanding (net of unamortized debt issuance costs) at the end of the first quarter, up $0.6 billion from year-end 2019.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month. The consensus estimate has shifted -12.36% due to these changes.
VGM Scores
At this time, Marriott has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.