NYSE$VAC

Marriott Vacations Worldwide Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported strong second-quarter financial results with significant growth in contract sales and adjusted EBITDA.

Marriott Vacations Worldwide reported a strong second quarter in 2022, with a 40% increase in consolidated vacation ownership contract sales, a 55% increase in adjusted EBITDA, and significant returns to shareholders. The company also introduced Abound by Marriott Vacations, a new program providing more options and access for Owners.

  • Consolidated Vacation Ownership contract sales were $506 million, a 40% increase compared to the second quarter of 2021, and VPG increased 7% to $4,613.
  • Net income attributable to common shareholders was $136 million, or $2.97 fully diluted earnings per share.
  • Adjusted EBITDA was $255 million, a 55% increase compared to the second quarter of 2021, as the Company continues to see a strong recovery in the business.
  • The Company returned $219 million to shareholders, repurchasing more than 1.4 million shares of its common stock for $193 million and paying a quarterly dividend of $26 million.

Headline financials

Total Revenue

$1.16B

Previous: $979M+18.9%
EPS (adj)

$2.87

Previous: $0.85+237.6%
VPG

$4.61K

Previous: $4.3K+7.2%
Capital Expenditures

-$23M

Previous: -$11M-109.1%
Free Cash Flow

$113M

Previous: -$5M+2360.0%
Net Income

$136M

Previous: $6M+2166.7%
Operating Income

$724M

Previous: $655M+10.5%
Gross Profit

$1.1B

Previous: $979M+12.2%
Cash & Equivalents

$324M

Previous: $1.3B-75.1%
Total Assets

$9.34B

Previous: $10.4B-10.3%
Stock-Based Comp

$12M

Previous: $14M-14.3%

Revenue & EPS history

Marriott Vacations · Revenue · Quarterly

$1.16B

Q2 2022+18.9%vs Q2 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Marriott Vacations · $1.16B total across 5 segments · Q2 2022

  • Sale of VO Products
    $425M+43.6%
  • Cost Reimbursements
    $324M+18.2%
  • Management and Exchange
    $203M-7.7%
  • Rental
    $140M+15.7%
  • Financing
    $72M+5.9%

Forward guidance

The company is providing guidance for the full year 2022. Income before income taxes attributable to common shareholders is expected to be between $511 million and $551 million. Adjusted EBITDA is expected to be between $880 million and $930 million.

Tailwinds

  • Net income attributable to common shareholders is expected to be between $365 million and $395 million.
  • Earnings per share - diluted is expected to be between $8.15 and $8.81.
  • Adjusted net income attributable to common shareholders is expected to be between $425 million and $465 million.
  • Adjusted earnings per share - diluted is expected to be between $9.47 and $10.35.
  • Adjusted free cash flow is expected to be between $650 million and $730 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.1%

Avg return

Earnings day

-1.5%

Avg return

5 days after

-0.8%

Avg return

30 days after

51%

32 / 63 earnings

Positive

+21.0%

Q3 2024

Best reaction

-26.8%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.1%+10.0%+23.7%
Q3 2025-26.8%-30.5%-18.1%
Q2 2025-2.0%-4.7%+6.0%
Q1 2025+10.5%+24.3%+13.5%
Q4 2024-9.3%-16.8%-22.5%
Q4 2025+0.1%-14.0%-22.4%
Q3 2024+21.0%+18.7%+22.0%
Q2 2024-10.7%-17.5%-15.2%
Q1 2024+2.0%+2.4%-9.5%
Q4 2023+11.7%+10.2%+15.1%
Q3 2023-8.2%-12.1%-13.7%
Q2 2023-11.9%-11.1%-12.5%
Q1 2023-4.2%-5.2%-4.8%
Q4 2022-1.7%-1.5%-18.1%
Q3 2022-0.9%-5.7%+1.3%
Q2 2022+3.4%+7.8%+1.8%
Q1 2022-4.1%-5.7%-0.7%
Q4 2021-3.0%-3.4%-6.4%
Q3 2021-0.5%-1.3%-5.0%
Q2 2021-5.8%-9.4%-1.8%
Q1 2021-2.6%-2.6%-3.5%
Q4 2020+0.0%+6.3%+4.1%
Q3 2020+9.2%+23.0%+38.8%
Q2 2020-0.7%-5.9%+11.8%
Q1 2020+3.0%+1.6%+30.5%
Q4 2019-5.6%-2.7%-41.3%
Q3 2019+3.2%+4.8%+9.7%
Q2 2019-5.7%-17.6%-3.9%
Q1 2019-3.6%-7.1%-14.3%
Q4 2018+3.3%+1.2%-4.2%
Q3 2018-9.2%-21.2%-24.5%
Q2 2018+2.4%+3.4%+1.8%
Q1 2018-4.6%-3.0%-1.0%
Q4 2017-1.4%+2.5%-6.5%
Q3 2017+8.1%+7.2%+1.3%
Q2 2017+0.9%-1.4%+3.2%
Q1 2017+1.4%-0.5%+5.0%
Q4 2016+10.1%+4.6%+8.1%
Q3 2016-7.0%-4.2%+6.0%
Q2 2016+11.6%+16.1%+13.0%
Q1 2016-7.6%
Q4 2015+12.5%
Q3 2015-16.8%
Q2 2015-7.8%
Q1 2015+7.5%
Q4 2014-1.3%
Q3 2014+7.1%
Q2 2014+0.5%
Q1 2014+3.4%
Q4 2013+4.1%
Q3 2013+9.2%
Q2 2013-5.6%
Q1 2013+5.6%
Q4 2012-12.7%
Q3 2012+0.1%
Q2 2012+8.3%
Q1 2011+0.5%
Q1 2012+8.6%
Q2 2011+1.1%
Q4 2011+3.4%
Q3 2011-0.7%
Q1 2010-0.7%
Q4 2010-0.7%
Q3 2010
Q2 2010

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