Hilton Grand Vacations Inc. (NYSE:HGV) shares are trading lower after the company reported fourth-quarter FY23 results.

Sales rose to $1.02 billion from $992 million a year ago, in line with the consensus. Revenues were affected by a net deferral of $21 million in the current period compared to a net deferral of $3 million in the same period in 2022.

Real estate sales and financing segment revenues totaled $591 million, a decrease of $4 million from last year. Total contract sales declined by $62 million to $572 million a year ago in the quarter.

Consolidated Net Owner Growth (NOG) for the year stood at 2.0%. Adjusted EBITDA rose to $270 million from $252 million a year ago, with an adjusted EBITDA margin expanding to 26.5% from 25.4% a year ago.

Adjusted EPS of $1.01 beat the consensus of $0.94.

The company held $589 million in cash and equivalents plus a total restricted cash of $296 million as of December 31, 2023. 

Buyback: In the fourth quarter, the company repurchased 2.7 million shares for $99 million. 

Through February 23, 2024, Hilton Grand bought back around 1.7 million shares for $71 million and currently has shares worth $289 million remaining available under the 2023 repurchase Plan.

Outlook: Hilton Grand Vacations expects 2024 Adjusted EBITDA, excluding deferrals and recognitions, to be in a range of $1.2 billion to $1.26 billion, inclusive of the operations of Bluegreen Vacations and expected synergies.

Price Action: HGV shares are down 6.66% at $45.40 on the last check Thursday.

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