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Marriott Vacations Worldwide (VAC) Misses Q1 EPS by 9c

April 28, 2016 9:29 AM EDT

Marriott Vacations Worldwide (NYSE: VAC) reported Q1 EPS of $0.87, $0.09 worse than the analyst estimate of $0.96. Revenue for the quarter came in at $425 million versus the consensus estimate of $437.97 million.

Total company vacation ownership contract sales were $153.5 million, $16.5 million lower than the first quarter of last year. The decrease was driven mainly by $15.9 million of lower contract sales to existing owners in the company's North America segment, as the prior year benefited from enhancements the company made to owner recognition levels. These enhancements helped drive a 7 percent increase in owner tours and a 1.4 point improvement in owner closing efficiency last year, resulting in contract sales growth of over 10 percent as compared to the first quarter of 2014. In addition, our Latin America sales channels were down roughly $2.5 million compared to the first quarter of last year, as the company continued to be impacted by a stronger U.S. dollar.

Outlook

The company is reaffirming the following guidance for the full year 2016:

Adjusted EBITDA

$261 million to $276 million

Adjusted fully diluted EPS

$4.31 to $4.66

Adjusted net income

$126 million to $136 million

Adjusted free cash flow

$135 million to $155 million

Company contract sales growth

4 percent to 8 percent

For earnings history and earnings-related data on Marriott Vacations Worldwide (VAC) click here.



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