Marriott Vacations beats Q3 adjusted EPS estimates, lifts FY guidance

Overview

• US vacation ownership firm's Q3 adjusted EPS rose 56%, exceeding analysts' expectations

• Adjusted EBITDA rose 27%, but slightly missed expectations

• Company raised full-year contract sales and adjusted EBITDA guidance despite hurricane impact

Outlook

• Company raises full-year 2026 contract sales guidance to $2.120 bln-$2.140 bln from $2.080 bln-$2.115 bln

• Company lifts full-year 2026 adjusted EBITDA outlook to $810 mln-$830 mln from $805 mln-$830 mln

• Company raises full-year 2026 adjusted EPS guidance to $8.65-$9.15 from $8.25-$9.05

Result Drivers

• CONTRACT SALES GROWTH - Q3 contract sales rose 29% year over year, driven by higher average transaction size and improved sales execution

• LOWER PRODUCT COSTS - Vacation Ownership adjusted EBITDA growth was supported by lower average cost of products

• SALES AND MARKETING EFFICIENCY - Segment adjusted EBITDA margin rose due to lower sales and marketing as a percentage of revenue and lower product cost rates

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"

• Wall Street's median 12-month price target for Marriott Vacations Worldwide Corporation is $127.00, about 7.1% above its November 3 closing price of $118.59

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• Nov 2 - Herbalife's Q3 results beat estimates on Asia-Pacific sales growth; lifts FY outlook

• Nov 2 - Marriott tops Q3 revenue, profit estimates

• Nov 2 - Choice Hotels Q3 revenue and adjusted EPS beat estimates, raises FY RevPAR outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)