MARRIOTT VACATIONS WORLDWIDE Reports Fourth Quarter FY2022 Earnings on February 22 2023

Earnings Overview

On February 22, 2023, MARRIOTT VACATIONS WORLDWIDE ($NYSE:VAC) reported their total revenue for the fourth quarter of fiscal year 2022 (ending December 31, 2022) to be USD 83.0 million, a 36.1% increase from the same quarter the year prior. Net income for the quarter was USD 1176.0 million, representing a 6.9% year-over-year growth.

Transcripts Simplified

Marriott Vacations Worldwide experienced strong contract sales for their Vacation Ownership segment in the fourth quarter. The vacation ownership product remains compelling, with contract sales growing 12% year-over-year, excluding an impact of $13 million from hurricanes. Rental profit declined year-over-year to $15 million due to owner occupancy increasing, while resort management profit increased 10% and financing profit increased 5%. Exchange & Third-Party Management active interval members increased 21%, while RevPAR increased 40% in the Aqua Aston business.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for VAC. More…

Cash Flow Snapshot

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Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for VAC. More…

Key Ratios Snapshot

Some of the financial key ratios for VAC are shown below. More…

Share Price

MARRIOTT VACATIONS WORLDWIDE (VAC) reported its fourth quarter earnings for the fiscal year 2022 on Wednesday, February 22, 2023. The stock opened at $155.0 and closed at $154.6, down by 0.1% from its prior closing price of 154.7. This slight decrease in price can be attributed to the fact that the company’s quarterly earnings did not meet analysts’ expectations.

Despite the lower-than-expected results for the quarter, MARRIOTT VACATIONS WORLDWIDE is optimistic about the future, citing a pent-up demand for travel and a possible return to normalcy in the second half of the fiscal year 2023. They expect their efforts to further invest in digital platforms and content will help them better serve their customers in the future. Live Quote…

Analysis

At GoodWhale, we have conducted an analysis of MARRIOTT VACATIONS WORLDWIDE’s financials to give you an insight into their risk profile. Our Risk Rating tool has determined that MARRIOTT VACATIONS WORLDWIDE is a high risk investment in terms of financial and business aspects. In addition to the Risk Rating, our analysis of the income sheet, balance sheet, and non-financial indicators has revealed three more risk warnings. To help you make well-informed decisions, we encourage you to register with us to gain access to these insights and more. More…

Peers

In the vacation ownership and timeshare industry, Marriott Vacations Worldwide Corp is one of the largest and most well-known companies.

However, it faces stiff competition from a number of other large companies, including iGrandiViaggi SpA, Archon Corp, and Resorttrust Inc. While each of these companies has its own strengths and weaknesses, Marriott has been able to stay ahead of the competition by offering a wide variety of vacation ownership products and experiences that appeal to a broad range of customers.

– iGrandiViaggi SpA ($LTS:0R8E)

Hai Grandi Viaggi SpA is a company that provides travel services. It has a market capitalization of 36.65 million as of 2022 and a return on equity of 0.08%. The company offers a variety of travel-related services, including air travel, hotel accommodations, car rentals, and cruises.

– Archon Corp ($OTCPK:ARHN)

Archon Corporation is a holding company that operates through its subsidiaries. The Company, through its subsidiaries, is engaged in the business of real estate investment, development, management, construction, and brokerage.

– Resorttrust Inc ($TSE:4681)

Resorttrust Inc is a Japanese company that operates resorts and hotels. As of 2022, the company had a market capitalization of 248.83 billion yen and a return on equity of 11.02%. The company operates a total of 74 hotels and resorts, including 57 in Japan and 17 overseas. In addition to hotel and resort operations, the company also provides a range of services such as golf course management, real estate development, and food and beverage operations.

Summary

MARRIOTT VACATIONS WORLDWIDE reported strong fourth quarter results for FY2022, with total revenue of USD 83.0 million, an increase of 36.1% year-over-year. Net income for the quarter was reported to be USD 1176.0 million, a 6.9% year-over-year increase. This suggests that MARRIOTT VACATIONS WORLDWIDE currently offers a solid investment opportunity, with increasing revenue and income that indicate future growth potential. The company’s strong financial performance for the quarter bodes well for long-term investors and could yield attractive returns.