What drove VAC's strong earnings performance in Q3 and Q4?

Marriott Vacations Worldwide Corporation (VAC) demonstrated robust earnings performance in Q3 and Q4 2024, driven by several key factors:

1. **Revenue Growth**: In Q3, consolidated Vacation Ownership contract sales increased by 5% year-over-year, reaching $459 million. This growth was supported by a 10% rise in tours, which reached 110,557. The company's focus on first-time buyers and affluent customer segments has been a strategic differentiator.
2. **Occupancy Rate and Average Room Rate**: Marriott Vacations reported nearly 90% resort occupancy and a year-over-year growth in contract sales. The average room rate increased by approximately 6%.
3. **Financial Performance**: Net income for Q3 2024 was $84 million, with an EPS of $2.12 and adjusted EPS of $1.80. The company achieved an Adjusted EBITDA of $198 million.
4. **Strategic Initiatives**: The company's initiatives, such as the first-time buyer financing promotion and enhanced sales channels, have contributed to the growth in contract sales. Additionally, the recovery from last year's Maui wildfires added to the growth.
5. **Dividend Increase**: Marriott Vacations Worldwide recently announced a 4% hike in its quarterly dividend, indicating confidence in its leisure-focused business strategy and growth prospects while reinforcing VAC’s commitment to delivering value to its shareholders.
6. **Share Buybacks**: The company's share repurchase program extension to 2025 reflects its confidence in future cash flows and commitment to returning value to shareholders.

In conclusion, Marriott Vacations Worldwide's strong earnings performance in Q3 and Q4 2024 can be attributed to a combination of revenue growth, high occupancy rates, strategic initiatives, and financial performance. The company's focus on first-time buyers, affluent segments, and recovery from natural disasters has contributed to its success.