Marriott Vacations Shares Fall as Results Miss Expectations

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 [e-mail]

(END) Dow Jones Newswires

October 13, 2016 10:05 ET (14:05 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.