Marriott Vacations Worldwide (NYSE:VAC) Issues Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Marriott Vacations Worldwide (NYSE:VAC) announced its earnings results on Wednesday. The company reported $2.64 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.57 by $0.07, FiscalAI reports. The firm had revenue of $1.37 billion during the quarter, compared to analysts’ expectations of $1.42 billion. Marriott Vacations Worldwide had a positive return on equity of 14.36% and a negative net margin of 4.75%. The company’s revenue was up 8.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.69 earnings per share.

Here are the key takeaways from Marriott Vacations Worldwide’s conference call:

• Third-quarter contract sales rose 29% to $565 million and adjusted EBITDA increased 27% to $216 million. Marriott Vacations raised the midpoint of its full-year guidance to $2.13 billion in contract sales and $820 million in adjusted EBITDA.
• Commercial initiatives drove VPG up 30% to $4,822, while marketing and sales costs fell to 48% of contract sales, a 600-basis-point improvement year over year. Management said owner engagement, upgraded loyalty tiers, and its sales-tour matching system are contributing, with further growth initiatives still scaling.
• Net corporate leverage declined to 3.6 times from 4.2 times at the start of the year, and the company expects $420 million of adjusted free cash flow for 2026. Management said it continues to prioritize debt reduction while retaining flexibility for shareholder returns.
• Hurricane Lowell is expected to reduce 2026 profits by $16 million, including an estimated $11 million in the fourth quarter, primarily because the Sheraton Kaua?i Resort is expected to remain closed through year-end. The damage also delays the resort’s planned sale by a couple of quarters, though the company expects to sell it in 2027 and pursue an insurance claim.

Marriott Vacations Worldwide Stock Up 3.7%

NYSE:VAC traded up $3.92 during trading hours on Friday, reaching $111.11. 122,455 shares of the stock were exchanged, compared to its average volume of 514,964. Marriott Vacations Worldwide has a twelve month low of $44.58 and a twelve month high of $131.34. The company has a debt-to-equity ratio of 2.55, a current ratio of 3.78 and a quick ratio of 2.99. The firm has a 50 day moving average of $106.37 and a 200 day moving average of $87.28. The stock has a market cap of $3.82 billion, a PE ratio of -14.95, a PEG ratio of 2.46 and a beta of 1.31.

Marriott Vacations Worldwide Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Wednesday, September 16th were given a $0.80 dividend. This represents a $3.20 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend was Wednesday, September 16th. Marriott Vacations Worldwide’s payout ratio is currently -43.07%.

Marriott Vacations Worldwide News Roundup

Here are the key news stories impacting Marriott Vacations Worldwide this week:

• Positive Sentiment: Contract sales rose 29% year over year to $565 million in the third quarter, while volume per guest increased 30% to $4,822—indicators of stronger sales productivity that may support the growth outlook. Marriott Vacations: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: A Zacks feature highlighted VAC as a potential long-term growth stock, offering a supportive investment narrative, though the article summary provided no specific forecast or operating catalyst. Zacks growth-stock article
• Neutral Sentiment: JPMorgan trimmed its target from $125 to $124 and Barclays from $140 to $139, but both maintained Overweight ratings, signaling continued optimism despite slightly lower estimates. JPMorgan analyst recommendation Barclays analyst recommendation
• Negative Sentiment: Wells Fargo lowered its target from $100 to $97 and reiterated an Underweight rating, reflecting a more cautious view of VAC’s prospects. Wells Fargo analyst recommendation

Analyst Upgrades and Downgrades

VAC has been the topic of several recent analyst reports. Weiss Ratings raised Marriott Vacations Worldwide from a “hold (c-)” rating to a “hold (c)” rating in a research note on Monday. Truist Financial increased their price objective on Marriott Vacations Worldwide from $97.00 to $134.00 and gave the stock a “buy” rating in a research note on Thursday, September 10th. Wall Street Zen raised Marriott Vacations Worldwide from a “hold” rating to a “buy” rating in a report on Saturday, August 15th. Barclays cut their price objective on Marriott Vacations Worldwide from $140.00 to $139.00 and set an “overweight” rating for the company in a report on Thursday. Finally, Wells Fargo & Company reduced their target price on shares of Marriott Vacations Worldwide from $100.00 to $97.00 and set an “underweight” rating on the stock in a research note on Thursday. Eight analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $107.58.

Insider Activity

In other Marriott Vacations Worldwide news, Director Christian Asmar sold 750,000 shares of the company’s stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $111.49, for a total value of $83,617,500.00. Following the sale, the director owned 3,380,818 shares in the company, valued at $376,927,398.82. This represents a 18.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Kathleen A. Pighini sold 2,500 shares of Marriott Vacations Worldwide stock in a transaction on Monday, August 17th. The stock was sold at an average price of $120.00, for a total transaction of $300,000.00. Following the transaction, the insider directly owned 10,821 shares of the company’s stock, valued at approximately $1,298,520. This trade represents a 18.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 13.30% of the stock is owned by company insiders.

About Marriott Vacations Worldwide

Marriott Vacations Worldwide Corporation (NYSE:VAC) is a global vacation ownership and leisure travel company. It develops, markets, sells, and manages vacation ownership interests, which provide customers with access to accommodations and resort experiences through points-based and deeded ownership programs. The company also operates related vacation exchange, rental, resort management, and travel businesses.

Its portfolio includes vacation ownership and related offerings under brands such as Marriott Vacation Club, Sheraton Vacation Club, Westin Vacation Club, Grand Residences by Marriott, and Aqua-Aston.