Leading hospitality company Wyndham Worldwide
Corporation 's ( WYN ) first-quarter
2013 adjusted earnings of 71 cents per share surpassed the Zacks
Consensus Estimate by 7.6% and also grew 18.3% year over year.
Wyndham's growing Lodging as well as Vacation Ownership businesses
and share buybacks pushed up the earnings for the quarter.
Net revenues grew 9% year over year to $1.1 billion during the
quarter, in line with the Zacks Consensus Estimate.
Inside the Headline Numbers
Wyndham has three operating segments including Lodging, Vacation
Exchange and Rentals and Vacation Ownership. All the three segments
have both domestic and international operations.
Wyndham's Lodging segment reported revenues of
$222.0 million for the quarter, increased 20% year over year,
driven by a 4.0% rise in revenue per available room (RevPAR) and
higher hotel management reimbursable fees. International expansion
and higher revenues earned from the company-owned property in
Puerto Rico also boosted the segment's sales during the
Revenues from the Vacation Exchange and Rentals
segment nudged up 3.6% year over year to $374.0 million. However,
in constant currency, segment revenues were up 1% year over year
Vacation rental revenues surged 4% year over year to $166.0
million while Exchange revenues were up 3% year over year to $193.0
million, driven by 3% rise in exchange revenue per member.
Revenues from the Vacation Ownership segment at
Wyndham rose 9.6% to $549.0 million. However, the same has improved
2% without the impact of Shell Vacations Club acquisition. Vacation
Ownership Interest (VOI) sales remained flat year over year to $384
million as 10% rise in tour flow was neutralized by an 8% drop in
volume per guest.
In the first quarter, operating income increased annually by
1.7% to $181.0 million. The earnings before income tax,
depreciation and amortization (EBITDA) grew 3.5% year over year to
$234 million during the quarter, buoyed by higher EBITDA gain in
Wyndham's Lodging and Vacation Ownership businesses.
At the end of the quarter, Wyndham owned 7,380 properties with
631,800 guestrooms. Additionally, 950 hotels with nearly 110,000
rooms are currently under the company's construction pipeline.
Wyndham has bought back approximately 2.4 million shares worth
$140.0 million in the first quarter. During April, Wyndham
repurchased 620,000 shares at the cost of $39 million. Currently
about $328.0 million worth of shares remained under its existing
share repurchase program.
Management maintained its revenue and EBITDA guidance for 2013.
Wyndham expects revenues to be within $4.925 - $5.100 billion while
adjusted EBITDA outlook ranges from $1.140 to $1.165 billion.
Wyndham now projects adjusted earnings per share between $3.60 -
$3.70 in 2013.
Amid a sluggish economic environment, Wyndham has gained from
its strong operational performance in the Vacation Ownership and
Lodging businesses, increased global travel demand, revival of the
North American market and further international expansion.
Wyndham's achievement of more than 18% growth in adjusted earnings
in the reported quarter depicts the strength in its
However, Wyndham's European business will face a headwind from
the prevailing economic uncertainties, especially in the U.K.,
where austerity measures are hurting consumer confidence.
Wyndham currently carries a Zacks Rank #3 (Hold). Some other
hoteliers like Marriott International, Inc. ( MAR ) and Hyatt
Hotels Corporation ( H ) are going to report
their first-quarter earnings on May 1. Another hotelier
Starwood Hotels & Resorts Worldwide Inc. ( HOT ) is expected to
report on Apr 30.HYATT HOTELS CP (H): Free Stock Analysis ReportSTARWOOD HOTELS (HOT): Free Stock Analysis
ReportMARRIOTT INTL-A (MAR): Free Stock Analysis
ReportWYNDHAM WORLDWD (WYN): Free Stock Analysis
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