Shares of leading hotelier,
Wyndham Worldwide Corporation
), reached a new 52-week high of $73.48 on Monday, Dec 23, 2013
ahead of its fourth-quarter 2013 with the expectation of strong
fourth-quarter 2013 results.
The closing price of the hotelier on Dec 23 was $72.49,
representing a solid one-year return of about 38.9% and
year-to-date return of about 33.9%. Average volume of shares
traded over the last three months stands at approximately
Wyndham is expected to report fourth-quarter 2013 earnings
results in early Feb 2014. The company projects fourth-quarter
earnings to be within 70 cents-72 cents per share, representing
an impressive year-over-year growth of 22.8%-26.3%. The Zacks
Consensus Estimate for the fourth-quarter stands at 74 cents.
The company has been witnessing solid earnings growth in the
past three quarters, benefiting from increased revenues, improved
margin and lower share count due to aggressive share buybacks by
the company. Wyndham's solid performance across all three
operating segments - Lodging, Vacation Exchange and Rentals and
Vacation Ownership - has enabled it to outperform even in this
difficult consumer spending environment. In fact, the hotelier
has beaten the Zacks Consensus Estimate for the past eight
We expect the company's fourth-quarter results to be no
different. Both the top and bottom lines should be strong in the
quaretr. In fact, during its third-quarter conference call, the
company has raised its earnings per share expectation for 2013 to
a range of $3.78-$3.80, up from $3.66-$3.76. This is the second
time in a row that Wyndham has raised its earnings expectation
following solid quarterly results. Consecutive raise in earnings
guidance sets a bullish tone for the coming quarters, helped by a
strong developmental pipeline, significant international exposure
and transition to a greater fee-for-service-based business.
Other Stocks to Consider
Wyndham holds a Zacks Rank #2 (Buy). Investors interested in
the hotel and lodging industry may consider stocks like
Home Inns & Hotels Management Inc.
Orient-Express Hotels Ltd.
Marriott International, Inc.
). While Home Inns & Hotels and Orient-Express Hotels sport a
Zacks Rank #1 (Strong Buy), Marriott holds the same rank as
HOME INNS&HOTEL (HMIN): Free Stock Analysis
MARRIOTT INTL-A (MAR): Free Stock Analysis
ORIENT EXP HOTL (OEH): Free Stock Analysis
WYNDHAM WORLDWD (WYN): Free Stock Analysis
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