Why Are Marriott Vacations (VAC) Shares Soaring Today

What Happened:

Shares of vacation ownership company Marriott Vacations (NYSE:VAC) jumped 9.2% in the afternoon session after the company reported fourth-quarter results that exceeded analysts' revenue expectations as its Vacation Ownership segment outperformed. Its adjusted EBITDA and EPS also topped Wall Street's estimates. The company noted that the wildfires in Maui, Hawaii impacted its performance as it operates four resorts on the island. As a result, its contract sales declined 2% year on year during the quarter. Without the fires, Marriott Vacations estimates it would have grown contract sales by 4%. Overall, this quarter's results seemed fairly positive, and shareholders should feel optimistic.

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What is the market telling us:

Marriott Vacations's shares are not very volatile than the market average and over the last year have had only 9 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Marriott Vacations is up 8.3% since the beginning of the year, but at $95.79 per share it is still trading 38.2% below its 52-week high of $154.94 from March 2023. Investors who bought $1,000 worth of Marriott Vacations's shares 5 years ago would now be looking at an investment worth $970.45.

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