Shares of Marriott Vacations Worldwide (VAC) plummeted 5.07% in intraday trading on Tuesday, despite reporting better-than-expected second-quarter earnings. The stock's decline comes as Stifel lowered its price target for the company from $103 to $101, signaling potential concerns about the company's future performance.

Marriott Vacations reported adjusted earnings per share of $1.96 for Q2 2025, beating analyst estimates of $1.77 and showing a 78% year-over-year increase. Revenue also surpassed expectations, rising 9% to $1.25 billion. However, investors seemed to focus on some underlying challenges in the report, including flat contract sales and a 3% decline in average volume per guest (VPG) to $3,631.

While the company's cost-saving initiatives and digital transformation efforts have improved profit margins, concerns linger about the softness in customer spending and the ongoing pressures in the Exchange & Third-Party Management segment. The mixed results, combined with Stifel's price target cut, appear to have overshadowed the positive aspects of the earnings report, leading to the significant stock price decline.