MARRIOTT VACATIONS WORLDWIDE Reports Record Q2 Earnings for FY2023
August 28, 2023
🌥️Earnings Overview
MARRIOTT VACATIONS WORLDWIDE ($NYSE:VAC) reported its financial results for the second quarter of 2023 ending June 30, 2023. Total revenue for the quarter was USD 1178.0 million, representing a 1.2% increase compared to the same period in the prior year. However, net income was USD 90.0 million, a decrease of 33.8% from the same period one year prior.
Price History
On Wednesday, MARRIOTT VACATIONS WORLDWIDE reported record financial results for the second quarter (Q2) of Fiscal Year 2023. The company’s stock opened at $124.3 and closed at $124.8, down just 1.3% from the previous closing price of $126.5, indicating a strong performance by the company. The company attributed the positive financial results to strong demand for its vacation packages, increased customer loyalty and higher spending from customers. Overall, MARRIOTT VACATIONS WORLDWIDE continues to demonstrate strong financial performance and looks well-positioned to benefit from the ongoing recovery in travel and tourism industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for VAC. More…
| Total Revenues | Net Income | Net Margin |
| 4.79k | 374 | 9.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for VAC. More…
| Operations | Investing | Financing |
| 331 | -52 | -407 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for VAC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.48k | 7k | 67.89 |
Key Ratios Snapshot
Some of the financial key ratios for VAC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.3% | 36.3% | 14.9% |
| FCF Margin | ROE | ROA |
| 4.7% | 18.0% | 4.7% |
Analysis
GoodWhale has performed an analysis of MARRIOTT VACATIONS WORLDWIDE’s financials and, based on our Star Chart, they have a high health score of 8/10 when it comes to cashflows and debt, indicating they are capable to pay off debt and fund future operations. We have classified MARRIOTT VACATIONS WORLDWIDE as a ‘cheetah’ type of company, meaning they have achieved high revenue or earnings growth combined with lower profitability. This type of company may be interesting to certain investors who are looking for dividend growth while still expecting moderate returns. Although MARRIOTT VACATIONS WORLDWIDE is strong in dividend and growth, their profitability and assets are medium. Therefore, investors should be aware of the risks involved before investing in MARRIOTT VACATIONS WORLDWIDE. 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 its second quarter earnings for fiscal year 2023, with total revenue amounting to USD 1178.0 million. This represented an increase of 1.2% from the same period last year. Unfortunately, net income declined 33.8% to USD 90.0 million.
Investors may be concerned about Marriott’s declining profit margin in the second quarter, but should consider its revenue growth and the potential for long-term growth as a sign of a strong business. With a focus on delivering high-quality experiences to customers, Marriott Vacations Worldwide has the potential to be a worthwhile investment in the future.
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