Wyndham Worldwide Corporation
) is set to report second quarter 2014 results on Jul 24, 2014.
Last quarter, it posted a positive earnings surprise of 4.0%. Let's
see how things are shaping up for this announcement.
Factors to Consider this Quarter
Wyndham Worldwide beat earnings in three of the trailing four
quarters, while comfortably surpassing the revenue estimates in all
The company seems to be quite optimistic of posting strong
year-over-year earnings growth in the second quarter of 2014. It
expects adjusted earnings per share in the range of $1.11 to $1.13
in the second quarter of 2014. The Zacks Consensus Estimate stands
at $1.13, which is at the higher end of the guidance - reflecting
bullish expectations for the quarter.
We believe that the company's efforts and initiatives to boost
traffic resulted in a positive outlook. In order to survive in the
tough economic environment, Wyndham has devised new ways to
increase traffic, which include organizing television and digital
media campaigns to increase brand awareness while driving direct
bookings. Also, the company is launching new prototype hotels that
aim at enhancing the overall guest experience.
Moreover, the company is organizing podium presentations to
effectively and efficiently introduce prospective owners to the
benefits of its timeshare business that has solid long-term
potential. The company expects these new tools to drive growth in
the upcoming quarters.
However, like other leading hoteliers, lingering political
uncertainty in Latin America and in some parts of Africa and an
economic slowdown in China are expected to limit sales growth in
the second quarter. Moreover, an uncertain political situation in
Ukraine is expected to have a negative impact on the economic
sentiment in the Eurozone, thereby impacting the revenues of the
Our proven model does not conclusively show that Wyndham
Worldwide is likely to beat earnings this quarter. That is because
a stock needs to have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
Both the Most Accurate estimate and the Zacks Consensus
Estimate stand at $1.13. Hence, the difference is 0.00%.
Zacks Rank #2 (Buy):
Wyndham Worldwide's Zacks Rank #2 when combined with a 0.00% ESP
makes surprise prediction difficult. Note that the Sell-rated
stocks (#4 and 5) should never be considered going into an earnings
Stocks to Consider
Other stocks in the hotels and motels industry and broader
consumer discretionary sector that have both a positive earnings
ESP and a favorable Zacks Rank are:
Choice Hotels International Inc.
), with Earnings ESP of +2.04% and a Zacks Rank #2.
Pinnacle Entertainment Inc.
) with Earnings ESP of +8.3% and a Zacks Rank #2.
Penn National Gaming Inc.
) with Earnings ESP of +14.3% and a Zacks Rank #3 (Hold).
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WYNDHAM WORLDWD (WYN): Free Stock Analysis
PINNACLE ENTRTN (PNK): Free Stock Analysis
CHOICE HTL INTL (CHH): Free Stock Analysis
PENN NATL GAMNG (PENN): Free Stock Analysis
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