Wyndham Worldwide Beats Analyst Estimates on EPS

Wyndham Worldwide (NYSE: WYN  ) reported earnings on April 24. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased significantly. GAAP earnings per share shrank.

Margins dropped across the board.

Revenue details
Wyndham Worldwide notched revenue of $1.13 billion. The 11 analysts polled by S&P Capital IQ predicted sales of $1.12 billion on the same basis. GAAP reported sales were 9.4% higher than the prior-year quarter's $1.04 billion.

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

EPS details
EPS came in at $0.71. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.67 per share. Non-GAAP EPS of $0.71 for Q1 were 18% higher than the prior-year quarter's $0.60 per share. GAAP EPS of $0.19 for Q1 were 9.5% lower than the prior-year quarter's $0.21 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 50.7%, 170 basis points worse than the prior-year quarter. Operating margin was 16.0%, 120 basis points worse than the prior-year quarter. Net margin was 2.4%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $1.25 billion. On the bottom line, the average EPS estimate is $0.95.

Next year's average estimate for revenue is $4.95 billion. The average EPS estimate is $3.75.

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 $67.50.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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 February 19, 2014, at 1:54 PM, BetzabethT 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. Another common complaint is that maintenance and assessment fees increase very constantly; to the point lots of timeshare owners are no longer able to keep paying them. Many of them decide to stop paying, which is a huge mistake, being that their debt is taken to a collection agency and it ends up affecting their credit score very badly.

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

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