Marriot Vacations Worldwide Slips – Expects Negative Impact of Hurricane Irma on FY17 EPS

Marriot Vacations Worldwide (VAC) slipped 0.8% after it estimated that its 2017 contract sales could be negatively impacted by the damage caused by Hurricane Irma by about $16 million to $20 million and rental and ancillary revenues may sustain a blow of about $2 million to $3 million compared with earlier forecasts.

The company also expects its 2017 GAAP net income could be negatively impacted by about $6 million to $8 million. Adjusted net income could be negatively impacted by between $4 million and $6 million, the company said.

It said on Tuesday that a portion of the adverse impact to its contract sales and rental and ancillary revenues may be mitigated through business interruption insurance.

The company is still in the process of assessing the impact on its operations resulting from Hurricane Irma, however, it expects that mandatory evacuations, shutdowns and cancellations of reservations and scheduled tours resulting from Hurricane Irma will adversely impact sales operations at several of its locations, primarily those located on St. Thomas, in Florida and on Hilton Head Island, South Carolina.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with's FREE daily email newsletter.