The company delivered net income of $26.807 million, or $0.97 a share, which was significantly higher than the $21.555 million, or $0.67 a share, in the year-ago quarter. On an adjusted basis, EPS would have been $0.96, up 17.1 percent from $0.82 in the previous year quarter. This is significantly lower than the Street estimates of $1.15.
Total revenues slackened from $407.136 million to $406.991 million hurt by weak results from the sale of vacation ownership products and rental. Analysts' expected Marriott Vacations to generate revenue of $446.83 million.
The company's president and CEO, Stephen Weisz, commented, "With the momentum we have seen in our new sales centers during the third quarter and our fourth quarter tour activations well ahead of this time last year, we remain confident in our growth strategy and the solid foundation we are building for continued sales growth going into 2017."
For the full year, Marriott Vacations narrowed its adjusted net income guidance from $126 million–$136 million to $129 million–$132 million while adjusted EPS is now predicted at $4.55–$4.65 compared to earlier outlook of $4.43–$4.78. The company expects contract sales of 4 percent currently, down from the earlier forecast of 4–8 percent.
Following this, the stock dropped $6.42, or 9.33 percent, to $62.41 in the pre-market trading. At last check in Thursday's regular morning session, Marriott Vacations was down 9.81 percent at $62.08.
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