Wyndham Worldwide Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Wyndham Worldwide (NYS: WYN) reported earnings on Feb. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Wyndham Worldwide met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped.

Gross margins grew, operating margins shrank, and net margins dropped.

Revenue details
Wyndham Worldwide reported revenue of $1.00 billion. The eight analysts polled by S&P Capital IQ expected a top line of $1.01 billion. GAAP sales were 6.7% higher than the prior-year quarter's $937.0 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.47. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.44 per share on the same basis. GAAP EPS of $0.37 for Q4 were 14% lower than the prior-year quarter's $0.43 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 51.6%, 270 basis points better than the prior-year quarter. Operating margin was 14.5%, 110 basis points worse than the prior-year quarter. Net margin was 5.6%, 280 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.01 billion. On the bottom line, the average EPS estimate is $0.54.

Next year's average estimate for revenue is $4.47 billion. The average EPS estimate is $2.85.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Wyndham Worldwide is outperform, with an average price target of $43.17.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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