Marriott Vacations Worldwide C Stock Price, News & Analysis

Marriott Vacations Worldwide reported robust Q2 2022 results, with contract sales reaching $506 million, a 40% increase year-over-year. Net income was $136 million, translating to $2.97 per share. Adjusted EBITDA surged 55% to $255 million. The company returned $219 million to shareholders through share repurchases and dividends. They also introduced the Abound by Marriott Vacations program, enhancing offerings for Owners. The full-year guidance estimates net income between $365 million and $395 million.

Marriott Vacations Worldwide Corporation (NYSE: VAC) announced an increase in its stock repurchase authorization by $500 million. In the second quarter of 2022, the company repurchased over 1.4 million shares for $193 million at an average price of $135.77 per share. Following the second quarter, approximately 1.1 million shares were repurchased for $131 million at an average price of $124 per share. After the increase, the total remaining capacity for repurchases stands at $528 million.

Marriott Vacations Worldwide Corporation (NYSE: VAC) is set to release its second quarter 2022 financial results after market close on August 8, 2022. A conference call will be held the following day at 8:30 a.m. ET to discuss the outcomes. Investors can join the call by dialing specific numbers or access it via a live webcast on the company’s Investor Relations website. An audio replay will be available for a month after the conference. Marriott Vacations boasts a significant global presence with over 120 resorts and approximately 700,000 owner families.

Marriott Vacations Worldwide (NYSE: VAC) announced the launch of Abound by Marriott Vacations, a new owner benefit and exchange program, set to debut in summer 2022. This initiative aims to enhance vacation experiences for travelers, particularly targeting Millennials. Abound provides access to over 90 vacation club resorts, 8,000 Marriott Bonvoy hotels, and 2,000 unique experiences. The leisure travel market is projected to reach $1.7 trillion by 2027, positioning this program for success in a growing industry.

Marriott Vacations Worldwide Corporation (NYSE: VAC) raised its full-year 2022 guidance, increasing contract sales expectations by $100 million due to high owner occupancies and strong tour growth. The company anticipates continuing strong adjusted development profit margins despite an increase in owner usage impacting rental and exchange revenues. Projected full-year adjusted EBITDA is expected to exceed previous guidance, ranging from $880 million to $930 million. The company also expects adjusted free cash flow between $590 million and $670 million.

Stephen P. Weisz will retire as CEO of Marriott Vacations Worldwide (NYSE: VAC) on December 31, 2022, after 50 years in the hospitality industry. John E. Geller Jr., current President, will succeed him on January 1, 2023. Under Weisz's leadership, the company has seen significant growth, notably through the 2018 acquisition of ILG. Geller has played a crucial role in the company's recovery from the COVID-19 pandemic and upcoming product innovations. The company aims to deliver value to shareholders while expanding its business.

Marriott Vacations Worldwide Corporation (NYSE: VAC) completed its first timeshare receivable securitization of 2022, issuing $375 million in notes backed by approximately $383 million in vacation ownership loans. The notes, issued through MVW 2022-1 LLC, feature varying interest rates ranging from 4.15% to 7.35%. Proceeds from the transaction will be used for purchasing additional loans, repaying a warehouse credit facility, covering transaction expenses, and for general corporate purposes. The company will also redeem its previous VSE 2016-A transaction for $38 million.

Marriott Vacations Worldwide Corporation (NYSE: VAC) has announced a quarterly cash dividend of $0.62 per share, payable on or around June 9, 2022. This dividend is granted to shareholders who are on record as of the close of business on May 26, 2022. The company continues to demonstrate its commitment to returning value to its shareholders while maintaining a strong business presence in the vacation ownership sector.