Wyndham Worldwide Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for profit of 85 cents per share, a rise of 32.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 79 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 85 cents during the last month. For the year, analysts are projecting net income of $3.16 per share, a rise of 26.9% from last year.
Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 5 cents, reporting profit of 60 cents per share against a mean estimate of net income of 55 cents per share.
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A Look Back: In the first quarter, profit fell 55.6% to $32 million (21 cents a share) from $72 million (41 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 8.8% to $1.04 billion from $952 million.
Stock Price Performance: Between April 24, 2012 and July 19, 2012, the stock price rose $4.24 (9%), from $47.11 to $51.35. The stock price saw one of its best stretches over the last year between April 10, 2012 and April 19, 2012, when shares rose for eight straight days, increasing 7% (+$3.14) over that span. It saw one of its worst periods between July 5, 2012 and July 12, 2012 when shares fell for six straight days, dropping 6% (-$3.17) over that span.
Wall St. Revenue Expectations: Analysts are projecting a rise of 6.4% in revenue from the year-earlier quarter to $1.16 billion.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 13.2% in the second quarter of the last fiscal year, 13.8% in the third quarter of the last fiscal year and 6.8% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
An income boost this time around would be welcome news after profit declines in the past two quarters. Net income dropped 29.1% in the fourth quarter of the last fiscal year and then again in the first quarter.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.2 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.11 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 22.3% to $2.12 billion while liabilities rose by 12.9% to $1.76 billion.
Analyst Ratings: With eight analysts rating the stock a buy, none rating it a sell and none rating the stock a hold, there are indications of a bullish stance by analysts.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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