Marriott Vacations Worldwide Corp. raised on Thursday its full-year financial guidance, as the vacation ownership company assured investors amid growing fears of a coming recession by saying owner occupancies remained “very high” and tour growth was “strong.” The company raised its 2022 guidance ranges for net income to $330 million to $352 million from $317 million to $347 million, for contract sales to $1.78 billion to $1.88 billion from $1.68 billion to $1.78 billion and for adjusted free cash flow to $590 million to $670 million from $560 million to $640 million. The company did not adjusted its full-year outlook for adjusted earnings per share, which it said last month was $9.13 to $10.09, compared with the current FactSet consensus of $9.30. “Given the increased owner usage, the updated guidance reflects the expected impact on rental and exchange revenue and profit this year,” said Chief Executive Stephen Weisz. “The company expects owner usage to normalize in 2023.” The stock, which was indicated up less than 1% in the premarket, has dropped 24.1% year to date through Wednesday, while the S&P 500 has lost 20.5%.
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