Wyndham Worldwide Corporation
) hit a 52-week high of $77.05 on Jul 9, eventually closing at
$77.05, ahead of the second quarter results later this month.
Wyndham is quite optimistic of posting strong year-over-year
earnings growth in the second quarter of 2014, results of which are
due to be released on Jul 24, 2014. At the first quarter earnings
call, the company provided its second quarter adjusted earnings of
$1.11 to $1.13, which represents a year-over-year gain of
approximately 13.0% to 15.0%. The Zacks Consensus Estimate stands
at $1.13, which is at the higher end of the guidance - reflecting
bullish expectations for the quarter.
Moreover, the company had raised its earnings guidance for 2014
during the first quarter earnings call. The increased range of
$4.23 to $4.33 marks a year-over-year increase of 10.4% to 13.0%.
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 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.
Overall, we believe that Wyndham's strong developmental pipeline,
significant international exposure and transition to a growing
fee-for-service-based business are expected to spur growth for the
Wyndham currently holds a Zacks Rank #2 (Buy). Other stocks in the
hotel industry worth considering include
Hilton Worldwide Holdings Inc.
Choice Hotels International Inc.
Extended Stay America, Inc.
). All these stocks have the same Zacks Rank as Wyndham.
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WYNDHAM WORLDWD (WYN): Free Stock Analysis
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