Core Insights - Shares of Marriott Vacations Worldwide (NYSE: VAC) have underperformed over the past year, losing approximately 5% of their value due to a slower-than-expected turnaround [1] Company Performance - The turnaround process for Marriott Vacations Worldwide has taken longer than anticipated, contributing to the decline in share value [1] Analyst Perspective - The analysis reflects a contrarian investment approach based on macroeconomic views and specific stock turnaround stories aimed at achieving outsized returns with a favorable risk/reward profile [1]

Core Viewpoint - Vishay Intertechnology, Inc. has launched a new series of Automotive Grade AC line rated ceramic disc safety capacitors, which are the first in the industry to feature a Y1 rating in a surface-mount casing, designed for EMI/RFI suppression in harsh environments [1][2]. Product Features - The SMDY1 Automotive Series capacitors have a Y1 rating of 500 VAC and 1500 VDC, with capacitance up to 4.7 nF, making them suitable for applications in electric vehicles (EV), hybrid electric vehicles (HEV), and plug-in hybrid electric vehicles (PHEV) [1][2]. - These capacitors are AEC-Q200 qualified and have a Class IIB humidity grade, capable of withstanding the 85/85/1000 h test, ensuring high humidity resistance [2]. - The capacitors allow for surface-mount assembly with a reflow soldering process, which reduces production costs and enables a low, flat profile on the PCB [3]. Compliance and Specifications - The components are RoHS-compliant and halogen-free, made from a copper-plated ceramic disc with flame-resistant epoxy resin encapsulation in accordance with UL 94 V-0 [4]. - The SMDY1 Automotive Series is available in two case sizes: C case with a creepage distance of 10 mm and D case with a creepage distance of 14.5 mm [4]. - Specifications include a ceramic class of 2, a dielectric of Y5U, a minimum capacitance of 470 pF, a maximum capacitance of 4700 pF, and a capacitance tolerance of ±20% [5]. Availability - Samples and production quantities of the SMDY1 Automotive Series are currently available, with lead times of 12 weeks [5]. Company Overview - Vishay Intertechnology, Inc. is a leading manufacturer of discrete semiconductors and passive electronic components, serving various markets including automotive, industrial, computing, and telecommunications [6].

Core Viewpoint - Marriott Vacations Worldwide reported strong Q2 2025 earnings, exceeding estimates and showing year-over-year growth, driven by increased Vacation Ownership sales and digital initiatives [3][5][10]. Financial Performance - Adjusted earnings per share (EPS) for Q2 2025 were $1.96, surpassing the Zacks Consensus Estimate of $1.72 by 14%, and up from $1.10 in the same quarter last year [5]. - Quarterly revenues reached $1.25 billion, exceeding the consensus mark of $1.22 billion by 1.9% and reflecting a 9% year-over-year increase [5]. - Adjusted EBITDA increased by 29% year over year to $203 million, with a margin of 24.3%, up from 20.7% a year ago [8]. Segment Highlights - Vacation Ownership segment revenue rose 12% year over year to $775 million, with adjusted EBITDA increasing 28% to $231 million [6]. - Exchange & Third-Party Management revenue declined 10% year over year to $51 million, with adjusted EBITDA falling 7% to $23 million [7]. Balance Sheet & Liquidity - The company ended Q2 with $799 million in liquidity, including $205 million in cash and equivalents, and $539 million in available credit [9]. - Total inventory was valued at $1 billion, with corporate debt at $3 billion and non-recourse securitized debt at $2 billion [9]. 2025 Outlook - Marriott Vacations reaffirmed its 2025 guidance, expecting contract sales between $1.74 billion and $1.83 billion, adjusted EBITDA of $750 million to $780 million, and adjusted EPS of $6.40 to $7.10 [10]. - The company anticipates $150 million to $200 million in EBITDA benefits from its modernization program by 2026, with projected free cash flow of $270 million to $330 million for 2025 [10]. Industry Context - Marriott Vacations Worldwide operates within the Zacks Leisure and Recreation Services industry, where competitor Royal Caribbean reported a 10.4% year-over-year revenue increase to $4.54 billion [14][15].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to WASHINGTON, D.C. 20549 _________________________ FORM 10-Q ___________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR Commission file number 001-35219 _________________________ Marriott Vacations Worldwid ...

Core Viewpoint - Marriott Vacations Worldwide Corporation held its Q2 2025 earnings call, discussing financial performance and future outlook [1][2][3]. Group 1: Company Overview - The earnings call featured key executives including John Geller, the President and CEO, and Jason Marino, the Executive VP and CFO [3][5]. - The call was hosted by Neal Goldner, Vice President of Investor Relations, indicating a structured approach to investor communication [2][3]. Group 2: Financial Information - The company emphasized that many comments made during the call are forward-looking statements, which are subject to risks and uncertainties [4]. - References to non-GAAP financial information were made, with reconciliations available in the press release and on the company's website [4].

Financial Data and Key Metrics Changes - Adjusted EBITDA for the quarter was $203 million, reflecting a 29% increase year-over-year with margins improving by 360 basis points [5][18] - Contract sales were down less than 1% for the quarter, showing improvement compared to Q1, with first-time buyer sales up 6% [7][16] - Total company rental profit declined by $7 million or 16% to $35 million, driven by increased unsold maintenance fees and marketing expenses [17] Business Line Data and Key Metrics Changes - Owner sales declined by 4% year-over-year due to lower VPGs, while owner tours remained flat [16] - Management exchange profit increased by 3% to $98 million, attributed to increased revenue in the vacation ownership segment [17] - Financing profit increased by 7% to $53 million [17] Market Data and Key Metrics Changes - Resort occupancy was nearly 90%, with strong performance in Maui, Coastal Florida, and The Caribbean, while Las Vegas showed relative weakness [6] - First-time buyers represented one-third of total contract sales, up 200 basis points from a year ago [8] Company Strategy and Development Direction - The company is focused solely on the upper upscale segment of the vacation ownership market, targeting owners with a median annual income of $150,000 [6] - A modernization initiative is expected to deliver $150 million to $200 million in run-rate benefits by 2026, with half from revenue initiatives and half from cost savings [7][11] - The company aims to grow tours and VPG in the low single digits and leverage fixed costs to improve margins [14] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model and the continued prioritization of leisure travel by consumers [5][13] - Loan delinquencies are trending down, with the lowest levels in two years, and management expects maintenance fees to remain flattish next year [12][19] - Despite macroeconomic uncertainties, management remains optimistic about long-term growth potential [14][42] Other Important Information - The company ended the quarter with leverage of 3.9 times and $800 million in liquidity [18] - Adjusted free cash flow is expected to be between $270 million and $330 million for the year, excluding one-time cash costs related to modernization initiatives [20] - The company acquired 52 completed timeshare units in Cowalack, Thailand for $43 million during the quarter [20] Q&A Session Summary Question: Contract sales performance in June and July - Management confirmed that July contract sales were up slightly from June, with June showing a 3% year-over-year increase [26][27] Question: Loan loss provision expectations - The loan loss provision is expected to be 12.5%, which is about half a point higher than previous guidance, reflecting ongoing improvements in delinquencies [28][30] Question: Expanded owner benefits and EBITDA impact - The expanded owner benefit provides more options for owners but is not expected to significantly impact EBITDA growth [35][36] Question: Share buyback restrictions - Management indicated that there were blackout periods that precluded share buybacks, but they plan to be opportunistic in the future [39] Question: Inventory efficiency and cost implications - Management aims to reduce inventory levels to one to two years on hand, with a slight increase in product costs expected over the next few years [48][49] Question: Recovery in Maui post-wildfire - Maui showed strong year-over-year contract sales, with transient occupancies and rates up, although sales remained flat compared to last year [62]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $203 million for the quarter, reflecting a 29% increase year-over-year with margins improving by 360 basis points [4][18] - Contract sales were down less than 1% for the quarter, an improvement compared to Q1, with first-time buyer sales up 6% year-over-year [6][15] - Delinquencies declined by 50 basis points sequentially and 110 basis points year-over-year, reaching the lowest levels in two years [15][29] Business Line Data and Key Metrics Changes - Owner sales declined by 4% due to lower VPGs, while owner tours remained flat [15] - Total company rental profit decreased by $7 million or 16% to $35 million, driven by increased unsold maintenance fees and marketing expenses [17] - Management exchange profit increased by 3% to $98 million, attributed to increased revenue in the vacation ownership segment [17] Market Data and Key Metrics Changes - The company achieved nearly 90% resort occupancy, with strong performance in Maui, Coastal Florida, and The Caribbean, while Las Vegas showed relative weakness [5] - First-time buyers represented a third of total contract sales in the quarter, up 200 basis points from a year ago [7] Company Strategy and Development Direction - The company is focused on modernization initiatives expected to deliver $150 million to $200 million in run rate benefits by the end of 2026, with half from revenue initiatives and half from cost savings [6][11] - The modernization program aims to enhance decision-making speed, optimize IT platforms, and drive growth in the leisure-focused business [7][12] - The company plans to restrict inventory spending to low-cost reacquired inventory and capital-efficient arrangements [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model and the continued prioritization of leisure travel by consumers [4][13] - Despite external uncertainties, the company expects high occupancy rates to continue and anticipates strong owner keys for the second half of the year [12][14] - The long-term financial model remains unchanged, with expectations for high single-digit to low double-digit EPS growth over time [14] Other Important Information - The company ended the quarter with $800 million in liquidity and a leverage ratio of 3.9 times [18] - Adjusted free cash flow is expected to be between $270 million and $330 million for the year, excluding one-time cash costs related to modernization initiatives [20] Q&A Session Summary Question: Contract sales trends in June and July - Management confirmed that July contract sales were up slightly from June, with June showing a 3% year-over-year increase [26][27] Question: Loan loss provision expectations - The loan loss provision guidance increased to 12.5%, which is about half a point higher than previous expectations, reflecting ongoing improvements in delinquencies [28][29] Question: Expanded owner benefits and EBITDA impact - The expanded owner benefit provides more options for owners but is not expected to significantly impact EBITDA growth [33][34] Question: Share buyback restrictions - Management indicated that there were blackout periods preventing share buybacks, but they plan to be opportunistic in the future [36][37] Question: Inventory efficiency and cost implications - The company aims to reduce inventory levels to one to two years on hand, with a slight increase in product costs expected over the next few years [45][46] Question: Loan loss provision increase despite improving delinquencies - Management explained that while delinquencies are improving, they are still higher than desired, prompting a conservative approach to the loan loss provision [53][54] Question: Sales performance in Maui - Maui showed strong year-over-year performance, with contract sales and occupancy rates improving, although some challenges remain [59]

Forward-Looking Statements Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believe," "expect," "plan," "intend," "anticipate," "estimate," "predict," "potential," "continue," "may," "might," "should," "could" or the negative of these terms or similar expressions. We caution you that these statements are not guarantees of future performance and are subject to numerous and evolving risks and unce ...

Core Insights - Marriott Vacations Worldwide reported $1.25 billion in revenue for the quarter ended June 2025, marking a year-over-year increase of 9.3% and an EPS of $1.96 compared to $1.10 a year ago, with revenue exceeding Zacks Consensus Estimate by 1.85% [1] - The company’s EPS also surpassed the consensus estimate of $1.72 by 13.95% [1] Revenue Breakdown - Cost reimbursements revenue was $407 million, exceeding the average estimate of $391.55 million by analysts, representing a year-over-year change of +7.7% [4] - Rental revenue reached $160 million, slightly above the average estimate of $157.54 million, with a year-over-year increase of +4.6% [4] - Management and exchange revenue was reported at $219 million, in line with the average estimate of $218.79 million, reflecting a +1.9% year-over-year change [4] - Sales of vacation ownership products generated $370 million, surpassing the estimated $360.33 million, with a significant year-over-year increase of +19.7% [4] - Financing revenue amounted to $90 million, exceeding the average estimate of $88.4 million, with a year-over-year change of +5.9% [4] Stock Performance - Shares of Marriott Vacations Worldwide have returned -8.3% over the past month, contrasting with the Zacks S&P 500 composite's +0.6% change, indicating underperformance relative to the broader market [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3]

Financial Performance - Marriott Vacations Worldwide reported quarterly earnings of $1.96 per share, exceeding the Zacks Consensus Estimate of $1.72 per share, and up from $1.1 per share a year ago, representing an earnings surprise of +13.95% [1] - The company posted revenues of $1.25 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.85%, compared to $1.14 billion in the same quarter last year [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.69 on revenues of $1.33 billion, and for the current fiscal year, it is $6.66 on revenues of $5.1 billion [7] - The estimate revisions trend for Marriott Vacations Worldwide was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Leisure and Recreation Services industry, to which Marriott Vacations Worldwide belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]