Marriott Vacations Shares Fall as Results Miss Expectations
October 13 2016 - 9:45AM
Dow Jones News
By Tess Stynes
Marriott Vacations Worldwide Corp. said its third-quarter
earnings rose 24%, driven mostly by lower costs, though the
timeshare company continued to report stronger contract sales in
key markets.
However, the Orlando, Fla., company's shares, up 21% this year,
fell 9.9% to $62 in recent light premarket trading as the results
missed expectations.
For the year, the company narrowed its per-share earnings
estimate to $4.55 to $4.65, from its previous estimate for
per-share profit of $4.43 to $4.78.
The company, spun off from Marriott International in late 2011,
has been opening new sales centers this year. The company has said
it expects that, although each of the new sales centers may take
two to three years to reach their full sales potential, each
location could generate more than $125 million in sales once they
are up to speed.
In the latest period, the company's total contract sales
increased 6.3%, excluding residential sales, thanks to 8.3% growth
in its North America and Asia-Pacific segments.
Chief Executive Stephen P. Weisz said in prepared remarks that
Marriott Vacations' contract sales growth reflects the continued
ramp-up of sales at new sales centers in North America and Asia
Pacific, along with growth at its established locations.
Over all, Marriott Vacations reported a profit of $26.8 million,
or 97 cents a share, up from $21.6 million, or 67 cents a share, a
year earlier. Excluding lower acquisition-related costs and other
items, adjusted per-share earnings rose to 96 cents from 82 cents.
Revenue eased by $145,000 to $407 million.
Analysts polled by Thomson Reuters expected per-share profit of
$1.14 and revenue of $447 million.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
October 13, 2016 09:30 ET (13:30 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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