Marriott Vacations reports Q2 adusted EPS $1.10, consensus $1.99

Reports Q2 revenue $1.14B, consensus $1.21B. “We had a mixed second quarter, with rentals exceeding our expectations and lower VPGs negatively impacting our contract sales. In addition, we have not seen the necessary improvements in our loan delinquencies, so we increased our sales reserves to reflect higher expected defaults,” said John Geller, president and chief executive officer. “Demand for travel remains strong with our resorts running 90% occupancy in the second quarter, tours increasing 5% and owner VPG’s flat compared to last year. However, first time buyer VPGs declined versus last year and Maui is recovering slower than our original expectations. As a result, we adjusted our contract sales guidance for the second half of the year.”