Wyndham Worldwide Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.10 per share, a rise of 17% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.14. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.10 during the last month. For the year, analysts are projecting profit of $3.18 per share, a rise of 27.7% from last year.
Past Earnings Performance: Last quarter, the company beat estimates by 2 cents, coming in at net income of 87 cents a share versus the estimate of profit of 85 cents a share. It marked the fourth straight quarter of beating estimates.
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A Look Back: In the second quarter, profit rose 12.3% to $128 million (88 cents a share) from $114 million (67 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 4.5% to $1.14 billion from $1.09 billion.
Stock Price Performance: Between July 25, 2012 and October 18, 2012, the stock price rose $5.03 (10.1%), from $49.84 to $54.87. 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 predict a rise of 5% in revenue from the year-earlier quarter to $1.27 billion.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 13.8% in the third quarter of the last fiscal year, 6.8% in the fourth quarter of the last fiscal year and 8.8% in the first quarter before increasing again in the second quarter.
Heading into this earnings announcement, the company is trying build on some positive momentum from last quarter’s income increase. After net income declines in the fourth quarter of the last fiscal year and first quarter, profit rose in the second quarter.
Analyst Ratings: With nine 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.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.14 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.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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