VAC Earnings Prediction
The chart below shows how VAC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VAC sees a +2.04% change in stock price 10 days leading up to the earnings, and a -3.07% change 10 days following the report. On the earnings day itself, the stock moves by -0.77%. This data can give you a slight idea of what to expect for the next quarter's release.
VAC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
832.00M
11.98%
9.19%
Gross Margin
69.95%
0.92%
-0.37%
Operating Margin
18.15%
26.04%
20.28%
Net Margin
10.10%
78.76%
102.40%
EPS
2.00
106.19%
127.27%
No Data Available
VAC Earnings Analysis
MARRIOTT VACATIONS WORLDWIDE CORPORATION Corporation (VAC.N) Earnings Conference Call
Positive
Contract Sales Resilience: 1. Strong Contract Sales Growth: Contract sales increased by 5% year-over-year, demonstrating resilience in consumer demand despite economic pressures.
Strong Resort Demand: 2. High Resort Occupancy Rates: The company achieved nearly 90% resort occupancy, reflecting strong interest in vacation experiences.
First-Time Buyer Engagement Growth: 3. Increased First-Time Buyer Engagement: First-time buyer tours grew by double digits compared to the prior year, with first-time buyer sales also increasing year-over-year.
Strong EBITDA Margin: 4. Robust Adjusted EBITDA Performance: The Vacation Ownership segment generated $231 million in adjusted EBITDA, achieving a 30% margin, indicating strong profitability.
Strong Liquidity and Stability: 5. Solid Liquidity Position: The company ended the quarter with over $900 million in liquidity and no corporate debt maturities until 2026, ensuring financial stability.
Negative
VPG Decline Analysis: 1. Decline in VPG: The average VPG (Volume Per Guest) decreased by 4% year-over-year, indicating a drop in revenue generated per customer despite an increase in tours.
Exchange Segment EBITDA Decline: 2. Adjusted EBITDA Decline in Exchange Segment: Adjusted EBITDA for the Exchange and Third-Party Management segment fell by $7 million year-over-year, primarily due to lower transactions at Interval and reduced profit at Aqua-Aston.
Hurricane Sales Loss: 3. Hurricane Impact on Sales: The company estimated a loss of approximately $8 million in contract sales and a few million dollars in adjusted EBITDA in Q4 due to Hurricane Milton, affecting their overall performance.
Sales and Marketing Expenses Rise: 4. Increased Sales and Marketing Expenses: Sales and marketing expenses rose year-over-year, driven by higher sales reserves, which negatively impacted profitability as a percentage of revenue.
Adjusted EBITDA Guidance Update: 5. Lowered Full-Year Adjusted EBITDA Guidance: Despite a strong Q3, the company maintained its full-year adjusted EBITDA guidance, indicating limited growth expectations for the remainder of the year.
VAC FAQs
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VAC Earning Call Sentiment
Marriott Vacations Worldwide Corporation (VAC) Q3 2024 Earnings Call Transcript
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VAC.N
1.01%Positive
The earnings call indicates mixed signals: strong financial metrics with increased contract sales and rental profit, a positive factor. However, lowered EBITDA guidance and economic pressures pose concerns. The Q&A section reveals unclear management responses, particularly regarding contract sales. Despite cost-saving initiatives and shareholder returns, challenges like hurricane impact and competition remain. Given the company's mid-sized market cap, these factors collectively suggest a neutral stock price movement over the next two weeks.