Wyndham Worldwide Corporation (WYN): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
Wyndham's third quarter adjusted earnings of $1.67 per share beat the Zacks Consensus Estimate of $1.63 and were up 18% year over year owing to an increase in revenues and lower outstanding share count. Though net revenue of $1.51 billion missed the Zacks Consensus Estimate, it grew 6.1% year over year owing to solid revenue growth in all the three operating segments. 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. However, the 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.

Overview:

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 outright.

Wyndham operates its business through the following three segments:

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 hotels.


The Vacation Exchange and Rentals segment, previously known as Group RCI, provides vacation exchange products and services to owners of intervals 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 resorts.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



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