Yahoo Finance Marriott Vacations (VAC) Q2 Earnings Report Preview: What To Look For
Vacation ownership company Marriott Vacations (NYSE:VAC) will be announcing earnings results tomorrow after market close. Here's what you need to know.
Marriott Vacations beat analysts' revenue expectations by 1.9% last quarter, reporting revenues of $1.20 billion, up 2.2% year on year. It was a mixed quarter for the company: Marriott Vacations beat analysts' revenue and EPS expectations. On the other hand, its full-year earnings forecast was underwhelming and missed expectations.
Is Marriott Vacations a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Marriott Vacations's revenue to grow 2.8% year on year to $1.21 billion, improving from the 1.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.05 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Marriott Vacations has missed Wall Street's revenue estimates three times over the last two years.
Looking at Marriott Vacations's peers in the hotels, resorts and cruise lines segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Royal Caribbean delivered year-on-year revenue growth of 16.7%, beating analysts' expectations by 1.6%, and Carnival reported revenues up 17.7%, topping estimates by 1.9%. Royal Caribbean traded down 6.7% following the results while Carnival was up 12%.
Read our full analysis of Royal Caribbean's results here and Carnival's results here.
There has been positive sentiment among investors in the hotels, resorts and cruise lines segment, with share prices up 11.2% on average over the last month. Marriott Vacations is up 2% during the same time and is heading into earnings with an average analyst price target of $114.3 (compared to the current share price of $85.45).
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