Wyndham's fourth quarter adjusted earnings of $0.90 per share beat
the Zacks Consensus Estimate by 4.7%. Also, earnings were up 23%
year over year due to an increase in revenues and a decline in
interest expense. Net revenue grew 3% year over year to $1.231
billion in the quarter due to revenue growth in all the segments.
However, it was approximately in line with the consensus mark.
Going forward, we expect Wyndham's strong developmental pipeline,
significant international exposure, strong marketing efforts and
transition to a growing fee-for-service-based business model to
spur growth. The company increased its earnings and revenue
guidance for 2015. However, lingering political uncertainty in some
parts of the world, an economic slowdown in China, and fluctuation
in exchange rates are expected to limit sales growth. We maintain
our Neutral recommendation on the stock.
Wyndham Worldwide Corporation is a hospitality company engaged
in offering individual and business customers a range of
hospitality products and services across various accommodation
alternatives and price ranges through its premier portfolio of
global brands. The company operates over 20 brands, including
Wyndham Hotels and Resorts, Ramada, Days Inn, Super 8, Wyndham
Rewards, Wingate, Microtel, RCI, The Registry Collection, Endless
Vacation Rentals, Landal GreenParks, Cottages4You, Novasol, Wyndham
Vacation Resorts and WorldMark by Wyndham. Generally, the company
operates on a fee-based model and does not own the real estate
Wyndham operates its business through the following three
The Lodging segment franchises hotels in the upscale, mid-scale,
economy and extended-stay divisions of the lodging industry and
provides property management services to the owners of these
The Vacation Exchange and Rentals segment, previously known as
Group RCI, provides vacation exchange products and services to
owners of vacation ownership interests (VOIs). This segment markets
vacation rental properties primarily on behalf of independent
owners. Wyndham continues to use the RCI brand, a leading vacation
exchange network in the world, for its exchange business.
The Vacation Ownership segment develops, markets and sells VOIs
to individual consumers, provides consumer financing in connection
with the sale of VOIs, and offers property management services at
Wyndham Worldwide Corporation (WYN): Read the Full
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