Wyndham Worldwide Corp Earnings: Profit Drop Breaks Four Consecutive Quarters of Growing Profits
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Wyndham Worldwide Earnings Cheat Sheet for the Fourth Quarter
Results: Net income for the lodging company fell to $56 million (37 cents per share) vs. $78 million (43 cents per share) a year earlier. This is a decline of 28.2% from the year earlier quarter.
Revenue: Rose 6.7% to $1 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: Wyndham Worldwide Corporation reported adjusted net income of 47 cents per share. By that measure, the company beat the mean estimate of 43 cents per share. It fell exactly in line with the average revenue estimate of $1 billion.
Quoting Management: “2011 was another excellent year for our company,” said Stephen P. Holmes, chairman and CEO, Wyndham Worldwide. “In an environment of ongoing economic uncertainty, our businesses continued to execute at a high level. As expected, we generated robust free cash flow and effectively deployed that cash flow. We remain well positioned for growth and that confidence is reflected in the 53% dividend increase authorized by our Board of Directors.”
The company has now topped analyst estimates for the last four quarters. It beat the mark by 6 cents in the third quarter, by 8 cents in the second quarter, and by 5 cents in the first quarter.
Revenue has risen the past four quarters. Revenue increased 13.8% to $1.21 billion in the third quarter. The figure rose 13.2% in the second quarter from the year earlier and climbed 7.4% in the first quarter from the year-ago quarter.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 56 cents a share to 55 cents over the last seven days. The average estimate hasn’t changed from $2.46 per share for the fiscal year.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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