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Wyndham (WYN) Beats Q1 Earnings, Misses Revenues

Leading hotelier, Wyndham Worldwide Corporation WYN is a provider of various hospitality services to individual and business customers through its premier portfolio of global brands. The company has a significant presence in major hospitality markets in the United States and across the world. The company has an industry-leading guest loyalty program - Wyndham Rewards - which helps members to earn rewards and redeem points on their hotel stays.

In order to survive in the competitive environment, Wyndham is devising new ways to increase occupancy at its hotels. However, lingering political uncertainty in some of the international regions where the company operates is a concern.

Investors should also note the recent earnings estimate revisions for WYN, as the consensus estimate has remained mostly stable. Meanwhile, WYN has a strong history in earnings season. Wyndham has beat earnings results in three of the trailing four quarters, making for an average positive surprise of 4.40%. Wyndham’s revenues have also beaten the consensus mark in all the trailing four quarters.

Currently, WYN has a Zacks Rank #3 (Hold) but that could change following Wyndham’s earnings report which was just released. 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 EPS of $1.11 per share, and the company reported adjusted EPS of $1.12 instead.

Revenues: WYN reported net revenues of $1.30 billion. This marginally missed our consensus estimate of $1.32 billion.

Key Stats to Note: Adjusted EBITDA for Wyndham was $304 million up 3% year over year. Total system-wide RevPAR for Wyndham Hotel Group declined 1.6% in constant currency, mainly due to continued weakness in U.S. and Canadian oil markets, along with increased unit growth in lower RevPAR  regions like China.  

Wyndham expects adjusted earnings per share in the range of $5.61 to $5.75 per share in 2016, up from the prior guidance of $5.46-$5.60. In 2016, the company reiterated its revenue guidance and expects it to be in the range of $5.80 to $5.95 billion.

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

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WYNDHAM WORLDWD (WYN): Free Stock Analysis Report
 
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