Marriott Vacations exceeded Q4 sales estimates, but full-year guidance missed, remaining flat post-reporting.

From StockStory: 2025-02-26 17:40:17

Marriott Vacations (NYSE:VAC) reported Q4 CY2024 revenue of $1.33 billion, up 11.1% year on year, exceeding analyst estimates by 6.7%. Non-GAAP profit was $1.86 per share, 19.2% above expectations. However, adjusted EPS guidance for 2025 missed estimates by 13.6%. The company’s revenue growth over the last five years has been weak at 2.7% annually. Despite a strong Q4, with sales growth and successful initiatives, the stock remained flat at $84.75 after the report. It is important to consider valuation and business qualities before investing in Marriott Vacations.

Travel and Vacation Providers: Companies like Marriott Vacations need to innovate to stay relevant in a market where consumers are shifting towards buying experiences rather than products. Traditional travel companies face competition from new players and changing consumer preferences.

Cash Is King: Marriott Vacations has shown poor cash profitability in the last two years, with a free cash flow margin averaging 2.1%. Limited opportunities to return capital to shareholders may impact long-term growth and investment decisions.

Key Takeaways: While Marriott Vacations beat revenue and EPS expectations in Q4 CY2024, its full-year EBITDA guidance missed estimates. The number of guests also fell below expectations. This mixed quarter resulted in the stock remaining flat at $84.75 post-reporting. Investors should carefully evaluate valuation and recent performance before considering an investment in Marriott Vacations.



Read more at StockStory: Marriott Vacations’s (NYSE:VAC) Q4 Sales Beat Estimates