Overview

* Marriott Vacations ( VAC ) Q3 adjusted EPS beats analyst expectations

* Adjusted EBITDA for Q3 misses analyst estimates

* Contract sales declined 4% yr/yr due to lower tours and VPG declines

Outlook

* Company updates full-year 2025 contract sales guidance to $1.760 bln-$1.780 bln

* Company expects $150 mln-$200 mln Adjusted EBITDA benefit from modernization by 2026

* Company revises full-year adjusted EBITDA guidance to $740 mln-$755 mln

Result Drivers

* CONTRACT SALES DECLINE - Contract sales fell 4% due to a 1% decline in tours and a 5% decline in VPG

* STRATEGIC INITIATIVES - Co is realigning sales incentives and curbing third-party rentals to boost owner arrivals and satisfaction

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $1.69 $1.62 (9

Adjusted Analysts

EPS )

Q3 EPS -$0.07

Q3 Net -$2 mln

Income

Q3 Miss $170 mln $185.25

Adjusted mln (9

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"

* Wall Street's median 12-month price target for Marriott Vacations Worldwide Corp ( VAC ) is $90.00, about 26.3% above its November 4 closing price of $66.32

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)