Wyndham's (WYN) Q4 Earnings Trump Estimates, Revenues Lag

Leading hotelier, Wyndham Worldwide Corporation (WYN - Free Report) is a provider of various hospitality services to individual and business customers through its premier portfolio of global brands. The company has significant presence in major hospitality markets in the United States and across the world.

Moreover, the company has an industry-leading guest loyalty program - Wyndham Rewards - which helps members to earn rewards and redeem points on their hotel stays. Also, in order to survive in the competitive environment, Wyndham is devising new ways to increase occupancy at its hotels.

However, lingering global uncertainty in economies like Europe, Brazil and China has been limiting revenue growth. Additionally, negative currency translation has been marring the company’s revenues and profits over the past few quarters, given Wyndham’s considerable international operations.

Investors should note that the consensus estimate for WYN has been moving slightly upwards over the last 60 days. Meanwhile, WYN’s earnings have been mostly strong over the past few quarters. In fact, the company posted positive earnings surprises in three of the last four quarters, with an average beat of 0.98%. Revenues, however, outpaced the Zacks Consensus Estimate in just one of the trailing four quarters.

Wyndham Worldwide Corp Price and EPS Surprise

Wyndham Worldwide Corp Price and EPS Surprise | Wyndham Worldwide Corp Quote

WYN currently has a Zacks Rank #3 (Hold) but that could change following Wyndham’s earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: WYN beats on earnings. Our consensus earnings estimate called for earnings per share of $1.30 and the company reported earnings of $1.35 per share. Investors should note that these figures take out stock option expenses.

Revenues: WYN reported revenues of $1.32 billion. This slightly lagged our consensus estimate of $1.33 billion.

Key Stats to Note: Total system-wide same store RevPAR for Wyndham Hotel Group inched up 2.7% in constant currency, reflecting softness in domestic and Canadian markets.

Stock Price Impact: Inactive in pre-market trading.

 

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