NYSE$VAC

Marriott Vacations Worldwide Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported a mixed second quarter with rentals exceeding expectations, lower VPGs impacting contract sales, and increased sales reserves due to loan delinquencies.

Marriott Vacations Worldwide reported second quarter 2024 financial results with consolidated vacation ownership contract sales declining 1% to $449 million. Net income attributable to common stockholders was $37 million, or $0.98 per share, while adjusted net income was $42 million, or $1.10 per share. Adjusted EBITDA decreased 29% to $157 million, reflecting a $57 million net increase to the company’s sales reserve.

  • Consolidated Vacation Ownership contract sales declined 1% compared to the second quarter of 2023 to $449 million. Excluding Maui, contract sales increased 3% compared to the prior year.
  • The Company recorded a $70 million increase to its sales reserve reflecting higher expected future defaults on its existing vacation ownership notes receivable portfolio.
  • Net income attributable to common stockholders was $37 million compared to $90 million in the prior year, and fully diluted earnings per share was $0.98.
  • Adjusted EBITDA decreased 29% compared to the prior year to $157 million reflecting a $57 million net increase to the Company’s sales reserve.

Headline financials

Total Revenue

$1.14B

Previous: $1.18B-3.2%
EPS

$0.98

Previous: $2.19-55.3%
VPG

$3.74K

Previous: $3.97K-5.7%
Tours

111.8K

No prior period
Adjusted EBITDA

$158M

No prior period
Adjusted EBITDA Margin

20.7%

No prior period
VO Adjusted EBITDA

$181M

No prior period
Exchange Adjusted EBITDA

$25M

No prior period
Development Profit

$45M

No prior period
Development Profit Margin

14.7%

No prior period
Capital Expenditures

-$29M

Previous: -$63M+54.0%
Free Cash Flow

$8M

Previous: $27M-70.4%
Net Income

$37M

Previous: $90M-58.9%
Operating Income

$632M

Previous: $758M-16.6%
Gross Profit

$972M

Previous: $1.1B-11.6%
Stock-Based Comp

$9M

Previous: $12M-25.0%

Revenue & EPS history

Marriott Vacations · Revenue · Quarterly

$1.14B

Q2 2024-3.2%vs Q2 2023
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Marriott Vacations · $1.32B total across 5 segments · Q4 2025

  • Cost Reimbursements
    $467M
  • Sale of VO Products
    $381M
  • Management and Exchange
    $212M
  • Rental
    $171M
  • Financing
    $92M

Forward guidance

The Company provides updated full year 2024 guidance.

Tailwinds

  • Contract sales are expected to be between $1,790 million and $1,825 million.
  • Net income attributable to common stockholders is projected to be between $195 million and $215 million.
  • Diluted earnings per share are anticipated to be between $5.05 and $5.55.
  • Adjusted EBITDA is expected to range from $685 million to $715 million.
  • Adjusted earnings per share - diluted are projected to be between $5.90 and $6.45.

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 2024

Historical avgQ2 2024

-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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