Aggressive Growth: Wyndham Worldwide (WYN)

Wyndham Worldwide (WYN) and analysts are bullish on the future for the global hotel company.

Company Description

Wyndham Worldwide has about 7,200 hotels world wide in addition to a 3.8 million member Exchange & Rental program with more than 80,000 locations.

Rising Revenues

On Jul 28 Wyndham Worldwide reported second-quarter results that included revenues of $963 million, a 5% improvement since last year. This drove net income to a 34% jump, up to $95 million.

Earrings broke down to 51 cents per share, topping the Zacks Consensus Estimate by a dime. Wyndham Worldwide has beaten expectations in each quarter since its IPO in the summer of 2006.

Optimistic Outlook

In the same release Wyndham Worldwide ratcheted up its full-year outlook. The company now expects revenues to land between $3.7 and $4.0 billion, up $100 million on both ends of the range. Wyndham Worldwide raised the earnings estimate to $1.78 to $1.88, from $1.56 to $1.71.

Analysts unanimously raised estimates, with the Zacks Consensus Estimate for 2010 coming in at $1.87, up 18 cents. Next years average forecast is up 12 cents to $2.01.

If Wyndham Worldwide can meet these goals, year-over-year growth rates will be 4% and 7%, respectively.

Comparison

Hotels are surprisingly a hot industry, ranked 33 out of 264 areas on Zacks.com. Wyndham Worldwide is the top rated company in that space occupied by 13 others.

The company has a net profit margin of 8.5% while its peers average break-even levels. Wyndham Worldwide’s ROE is 12.8%, easily ahead of the 3.4% industry average.

The Chart

Shares of WYN surged on the quarterly report and the stock is now just under the multi-year high.

WYNDHAM WORLDWD (WYN): Free Stock Analysis Report

About Bill Wilton 56 Articles

Affiliation: Zacks Investment Research

Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service.

Visit: Zacks Investment Research

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