Wyndham Worldwide 2Q profit up 4 pct, tops Street
Wyndham Worldwide 2nd-qtr net income rises 4 pct, beats forecasts on strength in all segments
PARSIPPANY, N.J. (AP) -- Wyndham Worldwide's second-quarter net income climbed 4 percent, bolstered by strong performance across its business segments. Its results beat analysts' estimates.
The hotel and resorts chain also raised its full-year earnings forecast on Wednesday
Wyndham Worldwide Corp. earned $133 million, or 98 cents per share, for the three months ended June 30. That's up from $128 million, or 88 cents per share, a year earlier.
A 7.5 percent drop in the number of outstanding shares from last year boosted earnings per share for the recent quarter by 8 cents.
Analysts, on average, expected earnings of 90 cents per share, according to FactSet.
Revenue rose 10 percent to $1.25 billion from $1.14 billion, topping Wall Street's $1.24 billion estimate.
The lodging division reported a 12 percent increase in revenue, thanks to higher hotel management reimbursable fees and revenues tied to company-owned hotels. Revenue per available room at properties in the U.S. climbed 5.3 percent. Total systemwide revenue per available room rose 2.1 percent.
Revenue per available room, or revpar, is a key gauge of a hotel operator's performance.
At the company's vacation exchange and rentals business, revenue rose 8 percent. The vacation ownership, or timeshare segment, posted an 11 percent revenue increase, helped partly by the acquisition of Shell Vacations Club.
For the full year, Wyndham now expects adjusted earnings of about $3.66 to $3.76 per share. It previously predicted an adjusted profit of $3.57 to $3.70 per share. Revenue is still anticipated to be in a range of approximately $4.93 billion to $5.1 billion.
Analysts' average prediction is for full-year earnings of $3.72 per share, on revenue of $4.97 billion.
The Parsippany, N.J., company also raised its existing share buyback by $750 million, bring the available amount of shares it can repurchase to $874 million.
Wyndham Worldwide shares closed Tuesday at $59.91, up about 13 percent since the start of the year.
