Wyndham Worldwide Earnings Cheat Sheet: Third Straight Quarter of Rising Profit

S&P 500 (NYSE:SPY) component Wyndham Worldwide Corporation (NYSE:WYN) reported net income above Wall Street’s expectations for the second quarter. Wyndham Worldwide Corporation is a hospitality company, offering individual consumers and business customers hospitality products and services.

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Wyndham Worldwide Earnings Cheat Sheet for the Second Quarter

Results: Net income for Wyndham Worldwide Corporation rose to $114 million (67 cents per share) vs. $95 million (51 cents per share) in the same quarter a year earlier. This marks a rise of 20% from the year earlier quarter.

Revenue: Rose 13.2% to $1.09 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: WYN reported adjusted net income of 64 cents per share. By that measure, the company beat the mean estimate of 56 cents per share. It beat the average revenue estimate of $1.05 billion.

Quoting Management: “Wyndham Worldwide once again delivered strong results across all three of our businesses, which are each well-positioned to deliver profit growth in the future,” said Stephen P. Holmes, chairman and CEO, Wyndham Worldwide. “In addition, we continue to generate significant and growing levels of sustainable free cash flow that we are deploying to drive shareholder value.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 44% and in the fourth quarter of the last fiscal year, the figure rose 8.2%.

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

Gross margin shrank 0.2 percentage point to 51.5%. The contraction appeared to be driven by increased costs, which rose 13.8% from the year earlier quarter while revenue rose 13.2%.

Revenue has risen the past four quarters. Revenue increased 7.4% to $952 million in the first quarter. The figure rose 2.6% in the fourth quarter of the last fiscal year from the year earlier and climbed 4.8% in the third quarter of the last fiscal year from the year-ago quarter.

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).

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(Source: Xignite Financials)

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