Back to top

Image: Bigstock

Wyndham (WYN) Q1 Earnings Beat, Revenues Miss Marginally

Read MoreHide Full Article

Leading hotelier, Wyndham Worldwide Corporation 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 current-year consensus estimate for Wyndham’s earnings has been moving upward over the last 60 days. Meanwhile, WYN’s earnings have been strong over the past few quarters. In fact, the company posted positive earnings surprises in all of the last four quarters, with an average beat of 4.14%. Revenues, however, have missed the Zacks Consensus Estimate in each of the trailing four quarters.

WYN currently has a Zacks Rank #4 (Sell) 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 $1.27 and the company reported earnings of $1.33 per share. Investors should note that these figures take out stock option expenses. The recent U.S. tax reform favored earnings in the quarter.

Revenues: WYN reported revenues of $1.19 billion. This lagged our consensus estimate of $1.23 billion.

Key Stats to Note: Gross vacation ownership interest (VOI) sales for the Wyndham Vacation Ownership segment grew 6% year over year. Volume per guest (VPG) declined 2%.

Stock Price Impact: In-active in pre-market trading.

Wyndham Worldwide Corp Price, Consensus and EPS Surprise

Check back for our full write up on this WYN earnings report later!

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Published in