Wednesday, April 28, 2010

Wyndham Worldwide (WYN) Beats Estimates Again, Raises Guidance for Q2 & Full Year 2010

TweetThis
After holding Wyndham Worldwide (WYN) since May 2009, I dumped almost the entire stake 2 weeks ago in the mid $26s, simply to lock in profits after a big move. The stock was once ultra cheap and now is probably a decent value - but not like it used to be. Not that valuation matters in this market. The company continues to execute and reported a solid quarter, with increases in guidance for Q2 and the full year of 2010.


A quick look at earnings (full report here)
  • Wyndham Worldwide Corp (WYN), franchiser of Days Inn and Super 8 hotels, posted higher first-quarter net income on Wednesday and raised its earnings and revenue outlook for the year. Net income rose to $50 million, or 27 cents per share, from $45 million, or 25 cents per share, a year earlier. Excluding items, Wyndham posted a profit of 34 cents per share.
  • Revenue fell 1.7 percent to $886 million, while expenses fell nearly 7 percent.
  • The company now expects annual revenue between $3.6 billion and $3.9 billion, up from its previous outlook of $3.5 billion to $3.9 billion. It sees adjusted earnings of $1.56 and $1.71 per share.
EPS bested analysts by 4 cents. Q2 was raised to $.38 to $.42 vs analysts $.37. Analysts were in at $1.60 for the year, while Wyndham had previously guided $1.48 to $1.69.


Considering RevPAR fell by 6.8% these are actually quite good results, but essentially it's a game of cutting costs by a larger amount than revenue fell.

The company continued to buy back shares, and increased its dividend:
  • ...the Company repurchased approximately 757,000 shares of its common stock at an average price of $24.20
  • ...the Company tripled its quarterly dividend, paying its first dividend at the $0.12 per share level on March 15, 2010
[Feb 10, 2010: Wyndham Worldwide Beats Estimates, Raises Dividend, Restarts Share Buyback Program]

Long Wyndham Worldwide in fund; no personal position


Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012 FundMyMutualFund.com