Wyndham Worldwide Beats on Both Top and Bottom Lines

Wyndham Worldwide (NYSE: WYN  ) reported earnings on April 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Wyndham Worldwide beat expectations on revenues and earnings per share.

Compared with the prior-year quarter, revenue expanded and GAAP earnings per share dropped significantly.

Gross margins expanded, operating margins increased, net margins dropped.

Revenue details
Wyndham Worldwide reported revenue of $1.04 billion. The eight analysts polled by S&P Capital IQ expected revenue of $1.00 billion on the same basis. GAAP reported sales were 8.8% higher than the prior-year quarter's $952.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.60. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.55 per share on the same basis. GAAP EPS of $0.21 for Q1 were 49% lower than the prior-year quarter's $0.41 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 54.6%, 350 basis points better than the prior-year quarter. Operating margin was 19.4%, 210 basis points better than the prior-year quarter. Net margin was 3.1%, 450 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.15 billion. On the bottom line, the average EPS estimate is $0.78.

Next year's average estimate for revenue is $4.51 billion. The average EPS estimate is $2.98.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Wyndham Worldwide is outperform, with an average price target of $50.69.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On January 17, 2014, at 1:52 PM, AmyWeb wrote:

    Wyndham timeshare presentations are hardcore and very long-lasting, people are usually pressured and bullied into buying a timeshare. The company has been sued in federal court several times by many wyndham timeshare owners for committing wrongs in their vacation credits, such as breach of contract, violation of California’s Timeshare Act and breach of fiduciary duty, among others. This is a good article about Wyndham:

    http://www.timesharescam.com/blog/149-wyndham-timeshare/

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