We expect hospitality company
Wyndham Worldwide Corp.
) to beat earnings expectations when it reports first-quarter
2013 results before the opening bell on Apr 24.
Why a Likely Positive Surprise?
Our proven model shows that Wyndham has the right combination
of two key ingredients to beat earnings.
Positive Zacks ESP:
The Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) for Wyndham is +3.03%. This indicates the difference between
the Most Accurate estimate, which stands at 68 cents per share,
and the Zacks Consensus Estimate of 66 cents per share. This is
very meaningful and a leading indicator of a likely positive
earnings surprise for shares.
Zacks Rank #3
The combination of Wyndham's Zacks Rank #3 (Hold) when combined
with a positive Earnings ESP of +3.03% makes us confident of a
positive earnings surprise in the soon-to-be reported
Note that stocks with Zacks Ranks of #1, 2 and 3 have a
significantly higher chance of beating earnings. The Sell rated
stocks (#4 and 5) should never be considered going into an
Drivers of Better-than-Expected Earnings
We believe Wyndham will likely beat earnings in first-quarter
2013 gaining from strong operational performance of the Vacation
Ownership business, increased global travel demand, revival of
the North American market and further international
Wyndham outperformed the Zacks Consensus Estimates for both
earnings and revenues in all four quarters of 2012 with an
average earnings surprise of 4.79%.
Other Stocks to Consider
Wyndham is not the only stock expected to post impressive
results this earnings season. We also observe that there are
other companies in the leisure sector, which are likely to beat
Hyatt Hotels Corporation
) Earnings ESP of +37.50% and a Zacks Rank #3 (Hold).
Marriott International, Inc.
) Earnings ESP of +4.88% and a Zacks Rank #3 (Hold).
Wynn Resorts Ltd.
) Earnings ESP of +3.87% and a Zacks Rank #3 (Hold).
HYATT HOTELS CP (H): Free Stock Analysis
MARRIOTT INTL-A (MAR): Free Stock Analysis
WYNDHAM WORLDWD (WYN): Free Stock Analysis
WYNN RESRTS LTD (WYNN): Free Stock Analysis
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