ORLANDO, Fla. — Timeshare company Marriott Vacations said Thursday that its third-quarter net income surged, bolstered by stronger results from its rental and resort management businesses.
The Orlando, Fla.-based company, whose brands include Marriott Vacation Club and The Ritz-Carlton Destination Club, also raised its full-year adjusted earnings forecast again.
Its shares jumped to their highest level since going public in November 2011.
For the period ended Sept. 6, Marriott Vacations earned $25 million, or 67 cents per share. A year ago the company earned $5 million, or 12 cents per share. Excluding separation-related costs and other items, earnings were 72 cents per share.
Analysts expected earnings of 39 cents per share, according to a FactSet survey.
Revenue increased 8 percent to $412 million from $383 million as it pulled in more revenue from the sale of vacation ownership products. Wall Street called for revenue of $400.4 million.
Rental revenue climbed 17 percent to $65 million, helped by stronger demand from consumers and a favorable mix of available rental properties. Resort management and other services revenue rose due in part to higher annual fees related to its Marriott Vacation Club Destinations program.
Contract sales increased in North America, but declined in Europe and the Asia Pacific region.
Shares of Marriott Vacations added $2.10, or 4.7 percent, to $46.60 in morning trading. Earlier in the session, the stock hit $48.32, a fresh all-time high.
Marriott Vacations now expects full-year adjusted earnings between $2.21 and $2.37 per share. Its prior outlook was for $1.94 to $2.10 per share, which was raised in July from $1.87 to $2.03 per share. Analysts predict earnings of $2.11 per share for 2013.
Marriott Vacations Worldwide Corp. also announced that its board approved the repurchase of up to 3.5 million shares of its common stock before March 28, 2015.