In This Article:
Vacation ownership company Marriott Vacations (NYSE:VAC) missed Wall Street’s revenue expectations in Q1 CY2025, with sales flat year on year at $1.2 billion. Its non-GAAP profit of $1.66 per share was 15.8% above analysts’ consensus estimates.
Is now the time to buy Marriott Vacations? Find out in our full research report.
Marriott Vacations (VAC) Q1 CY2025 Highlights:
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Revenue: $1.2 billion vs analyst estimates of $1.21 billion (flat year on year, 0.9% miss)
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Adjusted EPS: $1.66 vs analyst estimates of $1.43 (15.8% beat)
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Adjusted EBITDA: $192 million vs analyst estimates of $176.2 million (16% margin, 9% beat)
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Management raised its full-year Adjusted EPS guidance to $6.75 at the midpoint, a 1.5% increase
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EBITDA guidance for the full year is $765 million at the midpoint, above analyst estimates of $744.2 million
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Guests: 1,538, down 1.56 million year on year
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Market Capitalization: $2.01 billion
Company Overview
Spun off from Marriott International in 1984, Marriott Vacations (NYSE:VAC) is a vacation company providing leisure experiences for travelers around the world.
Sales Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, Marriott Vacations’s 2.9% annualized revenue growth over the last five years was weak. This fell short of our benchmarks and is a rough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new property or trend. Marriott Vacations’s annualized revenue growth of 2.1% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak.
This quarter, Marriott Vacations’s $1.2 billion of revenue was flat year on year, falling short of Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 3.8% over the next 12 months. Although this projection implies its newer products and services will fuel better top-line performance, it is still below average for the sector.
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