Marriott Vacations Earnings: Here’s Why Investors are Buying Shares Now

Marriott Vacations Worldwide Corp. (NYSE:VAC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 5%.

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Marriott Vacations Worldwide Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 85.19% to $0.50 in the quarter versus EPS of $0.27 in the year-earlier quarter.

Revenue: Rose 4.57% to $389 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Marriott Vacations Worldwide Corp. reported adjusted EPS income of $0.50 per share. By that measure, the company beat the mean analyst estimate of $0.44. It missed the average revenue estimate of $391.04 million.

Quoting Management: “We generated strong first quarter growth in adjusted EBITDA, as adjusted, which was up 34 percent, driven by continued VPG improvement and development margin expansion in our key North America segment,” said Stephen P. Weisz, president and chief executive officer. “Our top-line results benefitted from higher pricing and improved closing efficiency during the quarter. In addition, lower product cost and leveraging our fixed marketing and sales expenses drove another quarter of strong development margin performance. As a result, we now expect to achieve full year 2013 adjusted company development margin of 17 to 18 percent.”

Key Stats (on next page)…

Revenue decreased 23.73% from $510 million in the previous quarter. EPS decreased 7.41% from $0.54 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.48 and has not changed. For the current year, the average estimate has moved up from a profit of $1.80 to a profit of $1.92 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]