Wyndham Worldwide Earnings Cheat Sheet: Profit Rises for Third Straight Quarter

S&P 500 (NYSE:SPY) component Wyndham Worldwide Corporation (NYSE:WYN) reported net income above Wall Street’s expectations for the third quarter. Wyndham Worldwide is a hospitality company.

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Wyndham Worldwide Earnings Cheat Sheet for the Third Quarter

Results: Net income for Wyndham Worldwide Corporation rose to $175 million ($1.08 per share) vs. $156 million (84 cents per share) in the same quarter a year earlier. This marks a rise of 12.2% from the year earlier quarter.

Revenue: Rose 13.8% to $1.21 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: WYN reported adjusted net income of 94 cents per share. By that measure, the company beat the mean estimate of 88 cents per share. Analysts were expecting revenue of $1.22 billion.

Quoting Management: “I am pleased once again with our strong results, which reflect outstanding operating performance and the resiliency of our businesses,” said Stephen P. Holmes, chairman and CEO, Wyndham Worldwide. “In addition, we continued to thoughtfully deploy our free cash flow to repurchase our common shares and invest in our company.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 20% and in the first quarter, the figure rose 44%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 8 cents in the second quarter, by 5 cents in the first quarter, and by 2 cents in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 13.2% to $1.09 billion in the second quarter. The figure rose 7.4% in the first quarter from the year earlier and climbed 2.6% in the fourth quarter of the last fiscal year 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 fourth quarter has moved down from 47 cents a share to 44 cents over the last ninety days. The average estimate for the fiscal year is $2.40 per share, a rise from $2.26 ninety days ago.

Competitors to Watch: Marriott Intl., Inc. (NYSE:MAR), Royal Caribbean Cruises Ltd. (NYSE:RCL), Silverleaf Resorts, Inc. (NASDAQ:SVLF), Starwood Hotels & Resorts Worldwide, Inc (NYSE:HOT), Bluegreen Corporation (NYSE:BXG), Choice Hotels Intl., Inc. (NYSE:CHH), InterContinental Hotels (NYSE:IHG) and Hyatt (NYSE:H).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)