Wyndham Worldwide Earnings: Beats on Profit, Lighter Than Revenue Estimate

S&P 500 (NYSE:SPY) component Wyndham Worldwide Corporation (NYSE:WYN) reported its results for the second quarter. Wyndham Worldwide is a hospitality company.

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Wyndham Worldwide Corporation Earnings Cheat Sheet

Results: Net income for Wyndham Worldwide Corporation rose to $128 million (88 cents per share) vs. $114 million (67 cents per share) in the same quarter a year earlier. This marks a rise of 12.3% from the year-earlier quarter.

Revenue: Rose 4.5% to $1.14 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Wyndham Worldwide Corporation beat the mean analyst estimate of 85 cents per share. Analysts were expecting revenue of $1.16 billion.

Quoting Management: Quote”In the first half of 2012 we achieved back-to-back 36% increases in quarterly adjusted EPS growth in an economic environment that remains uncertain,” said Stephen P. Holmes, chairman and CEO, Wyndham Worldwide. “Underlying this growth is strong execution from each of our businesses and diversified product offerings well positioned to capitalize on consumers’ desire to travel. In addition, we benefited from capital allocation that included the return of capital to shareholders.”

Key Stats:

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 5 cents in the first quarter, by 4 cents in the fourth quarter of the last fiscal year, and by 6 cents in the third quarter of the last fiscal year.

Revenue has increased for four quarters in a row. Revenue increased 8.8% to $1.04 billion in the first quarter. The figure rose 6.8% in the fourth quarter of the last fiscal year from the year earlier and climbed 13.8% in the third quarter of the last fiscal year from the year-ago quarter.

The profit increase last quarter interrupts a two-quarter year-over-year profit decreases. Net income fell 55.6% in the first quarter and in the fourth quarter of the last fiscal year.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the third quarter has risen to $1.15 per share from $1.12. Over the past three months, the average estimate for the fiscal year has climbed from $2.97 per to share to $3.16.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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